New Energies, new possibilities

CF Industries plans to take a final investment decision on a new blue ammonia facility early next year.

With 1.4 million tonnes a year of production capacity, the project would be even larger than the US fertiliser company’s Donaldsonville No. 6 plant — the world’s biggest single grey NH3 production unit built to date (which, incidentally, is part of a complex due to be retrofitted with carbon capture equipment to enable production of blue ammonia).

“Our evaluation of the greenfield low-carbon ammonia plant is advancing well with a final investment decision expected in early 2025,” chief operating officer Christopher Bohn told an analyst call this week.

“We are nearing completion of our autothermal reforming ammonia plant FEED [front-end engineering design] study, giving us greater clarity on the capital required to construct new capacity.”

However, CF Industries CEO W. Anthony Will told the call that the cost of the project would be “in the neighbourhood of $4bn”.

This is double the $2bn estimate that had been announced by state agency Louisiana Economic Development in September 2023.

The fertiliser company is confident that low-carbon ammonia will be competitive, particularly when exported to Europe as the EU phases in its Carbon Border Adjustment Mechanism (CBAM).

Bohn noted that European ammonia production capacity is already being shut down, increasing dependence on imported volumes.

“By 2030, we would see that there’d probably be another three million to four million nutrient tonnes of imports required into Europe,” the COO estimated, adding that some of this would take the form of raw ammonia and some the form of upgraded nitrogen fertilisers.

While ammonia production within Europe would have to meet a target of 42% renewable hydrogen use by 2030, analyst BNEF has previously suggested that this would not apply to imports of fertilisers.

CBAM is set to kick in from 2026 — the same year the European fertiliser industry’s free allowances will start to be phased out — adding the weekly average auction price of the EU’s Emissions Trading System certificates onto imports of a variety of products—including hydrogen and ammonia.

Bohn estimated that by 2034, when free allowances are fully phased out, grey ammonia could cost $150 per tonne more than the product of an ATR that has sequestered 95% of its emissions.

“With the average sale price in the neighbourhood of $450 a metric tonne, along with the 45Q benefit [a tax credit for carbon capture projects] that we would expect to be able to generate, that should earn a reasonable rate of return on the kind of investment that we’re looking at making here,” Will said.

CF Industries is also betting that demand from global markets for cheap, low-carbon ammonia will vastly outweigh available supply in the late 2020s.

Air Products and OCI have both announced final investment decisions on large-scale blue NH3 production capacity for the latter half of the decade, while Bohn highlighted that Qatar is also expected to bring a project onstream in 2028.

“We don’t believe that the true projects that are moving forward is really building that supply side,” the COO said, although he did not mention whether there would be any likely competition with green ammonia producers.

While ATR technology is expected to be more expensive on a capital basis than steam methane reforming (SMR), Will argued that the difference in cost shrinks once the expense of flue gas capture from the latter is factored in.

“One of the big differences that you end up with is more tonnage of production coming out of an ATR in general than an SMR,” he added.

Will noted that the Donaldsonville No. 6 unit, which reportedly has a nameplate capacity of 3,600 tonnes a day, already produces 10% more than its nameplate would suggest. “The ATR would be quite a bit larger than that plant even.”

The fertiliser company is in talks with potential equity partners on the ATR project. But despite the talk of exports to Europe, publicly announced interest in equity and offtake from the project has mainly come from East Asian companies.

Korean steelmaker Posco had in 2023 announced its intention to form a joint venture with CF Industries to develop the project with an eye towards offtake.

Japanese energy company JERA had in April this year signed a joint development agreement that would see it take 48% ownership and procure more than 500,000 tonnes of low-carbon ammonia to be co-fired with coal at its power plants in Japan.

“Initially, we were focused on or structured an agreement around 52% equity,” said Will.

“I could see a scenario that would have us take less than 50% total equity based on the desires of a couple of the partners we’re talking to. We would want operating control and voting control in that kind of joint venture scenario, but it’s entirely possible that we would end up at or below 50% of the total equity.”

Source: HydrogenInsight

Rely has been awarded an EPsCm contract by AM Green India Pvt Ltd. for a 2 x 1,500 tons per day (TPD) green ammonia complex in Kakinada, Andhra Pradesh, India. The project includes 2 x 640 MW pressurised alkaline electrolysers for green hydrogen production, making it one of the world’s largest green hydrogen facilities to advance to the execution phase.

The project involves converting an existing grey ammonia facility (formerly NFCL) into a green ammonia facility. Strategically located at the Kakinada seaport on India’s east coast in Andhra Pradesh, the development reached its final investment decision (FID) in August 2024. It will produce 1 million tons per annum (Mtpa) of RED3 RFNBO-compliant green ammonia, most of which is designated for export to the European market. The facility will benefit from round-the-clock carbon-free power, sourced through a combination of wind, solar, and a pumped hydro storage system.

The facility has already received CertifHY pre-certification for green ammonia, marking it as the first Indian project to achieve this milestone.

Rely will deliver the design, detailed engineering, procurement, construction management, and commissioning (EPsCm) services for the entire facility. This includes electrolysers for green hydrogen production, air separation units for nitrogen, two ammonia synthesis trains, ammonia storage, port-side ammonia loading facilities, and offsite utilities. John Cockerill Hydrogen will provide the pressurized alkaline electrolysers.

The project will be executed locally, leveraging the strong presence and established track record of Rely’s parent companies, Technip Energies and John Cockerill, in India.

Beyond the Kakinada project, AM Green is focused on establishing green ammonia production facilities across multiple locations in India to reach its goal of 5 Mtpa of green ammonia capacity by 2030. This ambitious target is expected to accelerate efforts to meet net-zero goals in India and OECD markets. It equates to approximately 1 Mtpa of green hydrogen, representing a fifth of India’s target for green hydrogen production under the National Green Hydrogen Mission and 10% of Europe’s target for green hydrogen imports by 2030.

Damien Eyriès, Rely CEO commented: “We are honored and proud of having been selected by AM Green to engineer and deliver this flagship project that will massively contribute to the decarbonization of the hard-to-abate industries and illustrate that India plays a major role in our global climate goals. This award marks a significant milestone for Rely, less than a year after its creation, and our team is poised to make a substantial impact on the future of clean energy, driving innovation and setting new standards in the industry.”

Mahesh Kolli, Group President of AM Green said: “We are excited to partner with Rely to transform our existing Green Ammonia facility into one of the largest in India. Rely’s technical expertise will significantly enhance our capabilities in this project. This collaboration not only establishes AM Green as a global leader in energy transition but also plays a crucial role in advancing India’s green hydrogen mission and supporting net-zero targets in both India and OECD markets.”

Source: Hydrogentechworld

Yara and Neste shelve projects in light of low demand, difficult financial environment

by Alex Scott

Hyundai’s Hydrogen Future Will Look Like An Attractive Pontiac Aztek – Carbuzz

The Tucson and its signature ‘Parametric Hidden Lights’ moved Hyundai design forward in a big way, creating a much more premium look and feel for the SUV. But the fourth-generation NX4 Tucson was revealed four years ago, and the Seoul-based automaker recognizes that it’s time to take another step forward, both in styling and innovation. A hydrogen-powered Tucson or Santa Fe has existed for years, but those were adapted versions of SUVs that were never really meant to be FCEVs in the first place. This time, Hyundai is revealing an all-new concept vehicle that heralds a future design direction that is not too distant. In fact, the new INITIUM concept (Latin for ‘beginning’ or ‘first’) previews a production hydrogen fuel cell electric vehicle “coming in the first half of 2025.”

Coming To LA This Year

The public debut of the new Initium concept takes place at the 22nd China (Guangzhou) International Automobile Exhibition (15-24 November), but another example will also appear at the LA Auto Show (November 22-December 1) almost concurrently. This indicates we’re looking at a global model that will be sold in the East, West, and Europe, and Hyundai will be hoping that you like the way it looks. The new design language is called ‘Art of Steel‘ and is meant to “embody the character” of HTWO, Hyundai’s dedicated hydrogen brand. This means the styling will be reserved for FCEVs, and there’s no denying the N Vision 74‘s influence in the headlights and hoodline.

The name of the design language references Hyundai’s work in finding new ways to form steel, while the HTWO graphic (inspired by the ‘+’ symbol) references the hydrogen powertrain. But now it’s time to address the elephant in the room. Particularly in the color shown in these images, the rear end looks a lot like the Pontiac Aztek, albeit with a lot more coherence and funkiness. On balance, we like that a hydrogen car, an electric Ioniq car, and a gasoline combustion car will all have their own distinct flavor without losing their Hyundai identity, and we look forward to seeing how else this new styling language will be interpreted. First, Hyundai needs to convince people of its fuel cell’s value.

Remarkable Range To End Range Anxiety

The concept is focused on providing a spacious cabin and voluminous cargo capacity, unique convenience and safety features “distinctive to hydrogen cars,” and outstanding driving range with strong performance. Capacities were not revealed, nor was the chassis layout, but Hyundai says that a combination of large fuel tanks and aerodynamic wheels wrapped in low-resistance tires work together for a (targeted) driving range of more than 400 miles between refueling (EPA figures may be a little more conservative when the final product arrives). Acceleration figures were also not revealed, but the automaker claims that its advanced technology allows for an electric motor output of up to 150 kW (201 horsepower). Presumably, more than one will be fitted.

Those hydrogen-specific features? They include an FCEV-specific route planner that helps users plan an optimal route and the electricity produced by the car can also be used in Vehicle-to-Load scenarios, with the outdoor terminal specifically designed to connect directly to a standard 220V household socket. There’s also a “multi-skeleton structure” in the front, a side body structure, and nine airbags for peace of mind. We hope to learn more – and get a view of the interior – next month.

Hyundai's Hydrogen Future Will Look Like An Attractive Pontiac Aztek - Carbuzz - Hydrogen Central (hydrogen-central.com)