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This report focuses on the feasibility of the power-to-ammonia concept. Power-to-ammonia uses produced excess renewable electricity to electrolyze water, and then to react the obtained hydrogen with nitrogen, which is obtained through air separation, to produce ammonia. This process may be used as a “balancing load” to consume excess electricity on the grid and maintain grid stability. The product, ammonia, plays the role of a chemical storage option for excess renewable energy. This excess energy in the form of ammonia can be stored for long periods of time using mature technologies and an existing global infrastructure, and can further be used either as a fuel or a chemical commodity. Ammonia has a higher energy density than hydrogen; it is easier to store and transport than hydrogen, and it is much easier to liquefy than methane, and offers an energy chain with low carbon emissions.The objective of this study is to analyze technical, institutional and economic aspects of power-to-ammonia and the usage of ammonia as a flexible energy carrier.
Lectorale redeboekje naar aanleiding van de intrede in het lectoraat Systeemintegratie in de energietransitie
MULTIFILE
The traditional energy industry is transitioning from a centralised fossil fuel based industry to a decentralised renewable energy industry for several reasons including climate change, policy, and changing customer needs. Furthermore, renewable sources, such as wind and solar, are intermittent and unpredictable. This has implications for the business models of energy producers, such as increased mismatch between demand and supply, increased price volatility, shift in drivers of value creation. Due to the low marginal cost of production and the intermittent nature of renewables, the price volatility on the electricity markets, in particular the imbalance market, are expected to increase. However, there is potential for market parties operating in the electricity sector to profit from this development by providing flexibility to balance electricity supply and demand. Therefore, new business models are needed that can harness and exploit flexibility in a viable manner. In these business models, flexibility becomes the key driver of value creation.