Techno-Economic Aspects of Production, Storage and Distribution of Ammonia

The cost of green ammonia is determined primarily by its production cost, but it is also influenced by the cost of distribution and storage. Production costs are a function of plant location, size, and whether the plant is islanded or semi-islanded, that is whether the power source is variable renewable energy (VRE) or grid electricity. Capital costs for a green ammonia plant consist of equipment for the production of hydrogen (electrolyzer) and nitrogen (air separation), ammonia synthesis (Haber–Bosch, compressors and separators) and storage. Operating costs are mainly due to power consumption. The electrolyzer dominates both capital and operating costs in the manufacture of green ammonia.

Ammonia is stored in either pressurized or refrigerated vessels with the latter preferred for large scale storage. Distribution of ammonia may involve several transport modes depending on the location of the production and consumption sites. Inland transport can involve pipelines, trains, and trucks, and offshore shipping is generally done with medium, large or very large gas carrier vessels with refrigerated tanks.

A case study to supply a fleet of 36 ultralarge container vessels (ULCVs) operating between the ports of Shanghai and Rotterdam is used to exemplify the combination of production, storage and transportation costs.