Optimization of green ammonia distribution systems for intercontinental energy transport

Abstract

Green ammonia is a promising hydrogen derivative which enables intercontinental transport of dispatchable renewable energy. This research describes the development of a model which optimizes a global green ammonia network, considering the costs of production, storage, and transport. In generating the model, we show economies of scale for green ammonia production are small beyond 1 million tonnes per annum (MMTPA), although benefits accrue up to a production rate of 10 MMTPA if a production facility is serviced by a new port or requires a long pipeline. The model demonstrates that optimal sites for ammonia production require not only an excellent renewable resource but also ample land from which energy can be harvested. Land limitations constrain project size in otherwise optimal locations and force production to more expensive sites. Comparison of current crude oil markets to future ammonia markets reveals a trend away from global supply hubs and toward demand centers serviced by regional production.