| dc.description.abstract | This study investigates the decarbonization of ammonia production in the Netherlands,
which currently accounts for roughly a quarter of the country’s chemical sector emissions.
The primary objective is to determine the most cost-effective production route for decar-
bonizing the Dutch ammonia industry while taking into account site limitations.
The study begins with a comprehensive literature review, providing an overview of vari-
ous production technologies for ammonia. Among the alternatives considered, conventional
steam methane reforming (SMR) with carbon capture and storage (CCUS), electrified SMR
(eSMR) with CCUS and proton exchange membrane (PEM) electrolyzers emerge as the
most promising low-carbon routes for ammonia production.
To evaluate the viability of these processes, the study collects and standardizes techno-
economic data, including information on auxiliary systems. A multi-energy systems (MES)
approach combined with mixed-integer linear programming (MILP) optimization is em-
ployed to analyze ammonia production at two specific sites: Sluiskil and Chemelot.
The research explores four distinct cases to assess the feasibility, capacity, and associated
costs of the alternative routes for decarbonizing ammonia production. The first two cases
assume unlimited availability of current grid electricity and an imaginary future low-carbon
grid electricity, respectively. The third case incorporates the impact of renewable energy re-
sources (RES), such as offshore wind (OSW) and solar photovoltaic (PV), while considering
limitations in grid electricity imports. The fourth case further incorporates the expansion of
electricity networks to examine how the geographical location of ammonia production sites
affects decarbonization efforts.
The findings indicate that SMR-based ammonia with CCUS can potentially eliminate
up to 84% of current emissions. However, achieving further reductions relies on reducing
the carbon intensity of the Dutch electricity grid. Further decarbonization of ammonia
production becomes feasible through eSMR-based and PEM-based production, but it requires
substantial amounts of OSW, PV, hydrogen storage (HOS), and electric battery storage (BAT).
Moreover, the study highlights the influence of electricity networks on ammonia production
and reveals that the Sluiskil site holds a substantial comparative advantage over the Chemelot
site in terms of costs.
The average cost of ammonia in the Netherlands for an 84% reduction in emissions is
estimated at 300 C/tonNH3 , with an average abatement cost of 32.4 C/tonCO2 . For complete
emission reductions, the cost rises to 1671 C/tonNH3 and 858 C/tonCO2 . Notably, the data
underscore the challenges associated with decarbonizing the final 1% of emissions due to
the limited availability of renewable energy resources during specific periods of the year.
An 88% increase in ammonia price and a corresponding 123% increase in abatement costs
would be necessary.
The study acknowledges several limitations that future research should address. These
include the exclusion of dynamics related to ammonia storage, insufficient consideration of
flexibility parameters for certain technologies, reliance on eSMR with a low technological
readiness level (TRL), absence of a conventional plant with a high carbon capture rate,
assumption of unlimited available area for technology deployment, disregard for excess
electricity and heat sales and assumption of constant gas prices, among others.
In conclusion, this study provides valuable insights into the decarbonization of ammonia
production in the Netherlands. It emphasizes the need for policy interventions such as the
development of CO2 transport and offshore storage, funding for eSMR research and support
for renewable electricity to facilitate a sustainable and low-carbon ammonia industry. | |
