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The economics of global green ammonia trade – “Shipping Australian wind and sunshine to Germany”

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  • Egerer, Jonas
  • Grimm, Veronika
  • Niazmand, Kiana
  • Runge, Philipp

Abstract

This paper contributes to understanding the transformation of global energy trade to green energy carriers, focusing on green ammonia as the foreseeable first green hydrogen carrier. We provide a comprehensive overview of today's ammonia trade and assess scaling options for the trade of green ammonia. To that aim, we develop an optimization model for the integrated assessment of the green ammonia value chain that covers all steps from green ammonia production in an exporting country, up to delivery to a harbor in an importing country. The model endogenously chooses among different technology options and determines cost minimal operation. In a case study, we apply the model to the large-scale import of ammonia from Australia to Germany in a scenario for 2030. The results show that green ammonia can reach cost parity with gray ammonia even for moderate gas prices (but not necessarily with blue ammonia) if CO2 prices are high enough. We also provide a sensitivity analysis with respect to the interest rate and other key technical and economic parameters and show that cracking ammonia to provide pure hydrogen comes at a 45% cost markup per MWh at the destination.

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  • Egerer, Jonas & Grimm, Veronika & Niazmand, Kiana & Runge, Philipp, 2023. "The economics of global green ammonia trade – “Shipping Australian wind and sunshine to Germany”," Applied Energy, Elsevier, vol. 334(C).
    • Handle: RePEc:eee:appene:v:334:y:2023:i:c:s0306261923000260
    DOI: 10.1016/j.apenergy.2023.120662
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    References listed on IDEAS

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    Cited by:

    1. Shin, Jisoo & Park, Sungwook, 2024. "Numerical analysis and optimization of combustion and emissions in an ammonia-diesel dual-fuel engine using an ammonia direct injection strategy," Energy, Elsevier, vol. 289(C).
    2. Ephraim Bonah Agyekum & Jeffrey Dankwa Ampah & Solomon Eghosa Uhunamure & Karabo Shale & Ifeoma Prisca Onyenegecha & Vladimir Ivanovich Velkin, 2023. "Can Africa Serve Europe with Hydrogen Energy from Its Renewables?—Assessing the Economics of Shipping Hydrogen and Hydrogen Carriers to Europe from Different Parts of the Continent," Sustainability, MDPI, vol. 15(8), pages 1-14, April.
    3. Egerer, Jonas & Farhang-Damghani, Nima & Grimm, Veronika & Runge, Philipp, 2024. "The industry transformation from fossil fuels to hydrogen will reorganize value chains: Big picture and case studies for Germany," Applied Energy, Elsevier, vol. 358(C).
    4. Jinyi Hu & Yongbao Liu & Xing He & Jianfeng Zhao & Shaojun Xia, 2024. "Application of NH 3 Fuel in Power Equipment and Its Impact on NO x Emissions," Energies, MDPI, vol. 17(12), pages 1-39, June.

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