Implementing an Actionable Green Energy Transition Strategy

Unlike conventional ammonia, which is typically produced using fossil fuels as feedstock, green ammonia is produced using zero-carbon electricity to extract hydrogen from water through electrolysis. Green ammonia is increasingly gaining the attention of policymakers and investors as a means to support the decarbonization of the economy and the green energy transition. Besides the traditional uses of ammonia (primarily production of fertilizers and other nitrogenous compounds), green ammonia can be used as a zero-emission fuel or a form of energy storage for intermittent renewable energy sources. Compared to hydrogen, which is an intermediate product of ammonia synthesis, ammonia is easier to store and transport.

Christofferson, Robb & Company is interested in becoming a first-mover in the green ammonia market. The objective of this project was to assess the business potential for investment in a green ammonia production plant. The project investigated existing green ammonia pilot projects and evaluated the economics of a green ammonia production plant by analyzing: (i) the technical characteristics of the envisioned plant; (ii) the policy environment (including incentives to green ammonia production); (iii) the possibility to procure 100 percent green electricity at a reasonable cost; and (iv) potential offtakers for the output product. With regard to the plant site, the analysis focuses on the European Union and specifically Northern Germany, which offers a favorable policy environment, low energy prices and a developed industrial landscape.