TY - JOUR
T1 - The potential of green ammonia production to reduce renewable power curtailment and encourage the energy transition in China
AU - Zhao, Hanxin
AU - Kamp, Linda M.
AU - Lukszo, Zofia
PY - 2022
Y1 - 2022
N2 - The pursuing of inter-regional power transmission to address renewable power curtailment in China has resulted in disappointing gains. This paper evaluates the case of local green ammonia production to address this issue. An improved optimization-based simulation model is applied to simulate lifetime green manufacturing, and the impacts of main institutional incentives and oxygen synergy on investment are analysed. Levelized cost of ammonia is estimated at around 820 USD/t, which is about twice the present price. The operating rate, ammonia price, the electrical efficiency of electrolysers and the electricity price are found to be the key factors in green ammonia investment. Carbon pricing and value-added tax exemption exert obvious influences on the energy transition in China. A subsidy of approximately 450 USD/t will be required according to the present price; however, this can be reduced by 100 USD/t through oxygen synergy. Compared to inter-regional power transmission, green ammonia production shows both economic and environmental advantages. Therefore, we propose an appropriate combination of both options to address renewable power curtailment and the integration of oxygen manufacturing into hydrogen production. We consider the findings and policy implications will contribute to addressing renewable power curtailment and boosting the hydrogen economy in China.
AB - The pursuing of inter-regional power transmission to address renewable power curtailment in China has resulted in disappointing gains. This paper evaluates the case of local green ammonia production to address this issue. An improved optimization-based simulation model is applied to simulate lifetime green manufacturing, and the impacts of main institutional incentives and oxygen synergy on investment are analysed. Levelized cost of ammonia is estimated at around 820 USD/t, which is about twice the present price. The operating rate, ammonia price, the electrical efficiency of electrolysers and the electricity price are found to be the key factors in green ammonia investment. Carbon pricing and value-added tax exemption exert obvious influences on the energy transition in China. A subsidy of approximately 450 USD/t will be required according to the present price; however, this can be reduced by 100 USD/t through oxygen synergy. Compared to inter-regional power transmission, green ammonia production shows both economic and environmental advantages. Therefore, we propose an appropriate combination of both options to address renewable power curtailment and the integration of oxygen manufacturing into hydrogen production. We consider the findings and policy implications will contribute to addressing renewable power curtailment and boosting the hydrogen economy in China.
KW - China
KW - Green ammonia
KW - Green hydrogen
KW - Optimization-based simulation
KW - Renewable power curtailment
UR - http://www.scopus.com/inward/record.url?scp=85129956088&partnerID=8YFLogxK
U2 - 10.1016/j.ijhydene.2022.04.088
DO - 10.1016/j.ijhydene.2022.04.088
M3 - Article
AN - SCOPUS:85129956088
VL - 47
SP - 18935
EP - 18954
JO - International Journal of Hydrogen Energy
JF - International Journal of Hydrogen Energy
SN - 0360-3199
IS - 44
ER -