Orsted, Yara to Develop Renewable Hydrogen for Green Ammonia Production
October 05 2020 - 1:11AM
Dow Jones News
By Dominic Chopping
Danish offshore wind developer Orsted AS and Norwegian
fertilizer company Yara ASA said Monday that they have joined
forces to develop a project aimed at replacing fossil hydrogen with
renewable hydrogen in the production of ammonia.
The two companies said that together they will develop a 100
megawatt wind powered electrolyzer plant for renewable hydrogen
production in Yara's Sluiskil plant in the Netherlands.
The renewable hydrogen would generate around 75,000 tons of
green ammonia per year--around 10% of the capacity of one of the
ammonia plants in Sluiskil, with power supplied from Orsted.
The green ammonia is intended to be used in the production of
carbon neutral fertilizer products, but also has potential as a
future climate neutral shipping fuel, the companies added.
Hydrogen produced from renewable energy sources offers a
carbon-free alternative to fossil-based hydrogen, but currently
comes at a significantly higher cost. Closing this cost gap takes
time and will depend on public support to supplement private
investments in large-scale renewable hydrogen and ammonia
production, they said.
Orsted and Yara will therefore now seek public co-funding for
the development and construction of the electrolyzer facility to
support the project.
Subject to sufficient co-funding and a confirmed business case,
a final investment decision to build the new plant could be taken
late 2021 or early 2022 and the project could be operational in
2024-2025.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 05, 2020 01:56 ET (05:56 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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