BAKU, Azerbaijan, September 27. In the midst of the global push for decarbonization and energy security, major infrastructure projects are turning to ammonia as a safer and more cost-effective means of transporting hydrogen in large quantities, Trend reports.
Rystad Energy's latest projections reveal that by 2035, a staggering 174 export terminals worldwide will primarily focus on converting hydrogen into ammonia, constituting 62 percent of the total exported hydrogen volumes, equivalent to approximately 13.5 million tonnes per annum (tpa).
As the clean energy transition gains momentum, a substantial increase is anticipated in clean ammonia transportation and trade. Traded ammonia volumes are expected to skyrocket to 76 million tonnes by 2035, marking a fourfold increase from 2020 levels. The bulk of this surge will originate from Africa and North America, leading to a fivefold spike in ammonia exports by 2050, reaching a total of 121 million tonnes.
Japan and Germany, recognizing the pivotal role of hydrogen in achieving their net-zero emission goals, have already adjusted their national hydrogen strategies. While export projects are on a grand scale, some developers may opt to partially convert hydrogen to ammonia or explore alternative transportation methods. Nevertheless, investors are increasingly confident in the ammonia market, making substantial near-term investments.
In the hierarchy of clean hydrogen production, green hydrogen, generated from renewable sources, is the cleanest but also the most expensive. Blue hydrogen, produced from natural gas with carbon capture and storage, is more cost-efficient and viewed as a transitional solution to reduce emissions until cleaner alternatives are scaled up. Liquefied natural gas (LNG) terminals, already prevalent for transportation and power generation, could potentially be adapted for hydrogen transportation.
Minh Khoi Le, Head of Hydrogen Research at Rystad Energy, emphasizes the rapid global penetration of hydrogen, stating, "Hydrogen penetration is moving quickly and globally, entering new geographies and outpacing market expectations. With the ammonia trade booming, there is an urgent need to leverage existing assets to their fullest potential. Converting LNG terminals could be a good solution, not only optimizing current infrastructure but also spurring a re-evaluation of strategies that can cope with the scale of the expected market expansion."
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