YARIY Yara International ASA (PK)

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)

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