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Green ammonia in the energy industry: What are its uses?

InvestChile - August,5,2024

Produced from green hydrogen and nitrogen separated from the air, it is on track to become a cornerstone of the global energy industry.

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Green ammonia is emerging as one of the most promising solutions in the transition to cleaner and more sustainable energies. This chemical compound, produced from green hydrogen and nitrogen separated from the air, is on track to become a cornerstone of the global energy industry, and Chile has emerged as a key partner.

This has aroused the interest of a European consortium, HNH Energy, which has begun the environmental processing of a megaproject that contemplates a historic investment of US$11 billion in the Magallanes region. The goal? To produce green ammonia at a plant to be located in the small town of San Gregorio, 120 kilometers northeast of Punta Arenas.

This project, the first of its kind in the country, aims to produce ammonia from green hydrogen and nitrogen separated from the air, to be sold internationally. The plant will not only produce green ammonia, but will also include a seawater desalination plant, a wind farm, a multipurpose port and underground power transmission lines.

The project, which is expected to have a useful life of 50 years, will create 3,600 jobs during construction and 1,800 jobs in its operation phase.

What is green ammonia?

But what is green ammonia? Alex Godoy, director of CiSGER (The Sustainability and Strategic Resource Management Research Center) of the Universidad del Desarrollo, explained to Emol that “green ammonia is basically ammonia.” “It is called green ammonia because when nitrogen is taken from the air and mixed with green hydrogen to make ammonia, or NH3, the hydrogen comes from green hydrogen. And this is why we call it green ammonia,” he added.

Rodrigo Cáceres at CEDS (The Centre for Sustainable Energy and Development) of the Universidad Diego Portales, added that “it is a derivative of green hydrogen. There are several colors of ammonia associated with the manufacturing process and the energy resource used.” Specifically, he explained that green ammonia “is produced from green hydrogen, which uses renewable energy sources such as wind or solar power.”

“Instead of using natural gas (like traditional ammonia production), green ammonia is obtained by using hydrogen from water electrolysis, which is then combined with nitrogen. This process results in the production of ammonia without carbon emissions, as it uses renewable energy and avoids burning fossil fuels,” he said.

What is it used for and why Chile?

Regarding its use, Godoy emphasized that it has three main uses. It is used to produce fertilizer. It is used as a hydrogen carrier “because it is cheap and prevents the transportation of hydrogen as a gas, which is dangerous,” and it is also used as a fuel, because “it can be mixed with oil, and when mixed with oil it can combust quickly.”

Cáceres added that “it is used no differently than ‘conventional’ ammonia and has several important applications in the power production industry, agriculture and chemical sectors.” He mentioned that its importance lies mainly in the fact that “it has a renewable origin and is carbon-free, and its main use is associated with agriculture, where it acts as a fertilizer.”

However, he said that “it has also been considered in the power generation industry, as it is a green energy vector. It is also used as a raw material for the production of other chemical products such as refrigerants or nylon.”

Felipe Scott, an academic at the Faculty of Engineering and Applied Sciences of the Universidad de los Andes, pointed out that “Chile, especially the Magallanes region, has unique conditions for the production of green hydrogen.” This, he said, “is due to some of the highest plant factors in the world for wind power generation, availability of fresh water or proximity to the coast for seawater desalination, and finally, access to maritime routes.”

Cáceres highlighted that “Chile’s strategy in terms of green hydrogen/ammonia is focused on being a global supplier. Therefore, Punta Arenas represents a strategic location in several dimensions that are aligned with the country’s strategies.” Godoy commented that “the costs of electricity in Chile—the electricity required to produce hydrogen—are much cheaper than in Europe, so we have a huge potential in terms of being able to produce it.”

Source: Emol.

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Topics: Energy- Green Ammonia

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