21 Floating Blue Ammonia Production

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Floating Blue Ammonia

Production: Creating a
Zero-Carbon Emission Fuel

Golar LNG | Black & Veatch


Economic Investment Opportunities Exist While Transforming the Global Gas Industry

Decarbonization efforts are and scale of solutions needs to


gathering momentum across rapidly increase. Golar, an industry
governments, big business and leader in floating LNG and Black
financial institutions. China, Japan & Veatch, a leader in oil, gas and
and Korea – the three biggest chemical infrastructure, are building
importers of liquified natural gas on their established relationship to
(LNG) – have all announced national accelerate the hydrogen economy
pledges to go carbon neutral no and the low carbon energy future.
later than 2050 to 2060. The impetus
With such decarbonization
has spread to the business world as
pledges and activities progressing,
well, with many of the world’s largest
disruption of the world’s energy
and most influential corporations
markets is inevitable and already
leading the charge to set ambitious
in motion. Affordable, scalable
net-zero targets, setting in motion
energy alternatives to fossil fuels
decarbonization drives throughout
are emerging and financing is
their supply chains.
lining up to propel critical low
More than any other time, there is carbon infrastructure development.
now a strong economic incentive Goldman Sachs Group Inc. projects
for decarbonization solutions. As that in 2021 spending on renewable
of mid-2020, the value of assets power alone will overtake that of oil
under management applying and gas drilling for the first time and
environmental, social and corporate several utilities who have led the
governance (ESG) principles is way in investing in renewables are
estimated at more than US$40 emerging as what Bloomberg calls,
trillion as these companies continue “the clean supermajors.” Hydrogen
to seek out new, low- or zero- is a leading commodity in the quest
carbon investment opportunities. In for clean energy, but managing pure
addition, investors are looking for hydrogen poses multiple challenges.
opportunities to invest in bankable
decarbonization projects. This
reflects a growing realization that
to achieve these goals, the pace

Golar LNG | Black & Veatch


Ammonia: The Catalyst for the Hydrogen Economy
With initial projections indicating that electrification will The NG, along with water, is first fed to a catalytic steam
only be able to make up about 40 to 50 percent of the methane reformer (SMR) where hydrogen is produced
decarbonized energy market according to the IEA World from the methane (CH4 + H2O --> CO + 3H2). This gas
Energy Outlook, the drivers for other carbon-free energy is then fed to a catalytic shift conversion where further
sources and energy carriers are as relevant as ever. hydrogen is produced from water (CO + H2O --> CO2
+ H2). In the next step, the CO2 is removed using a
Investment in a global hydrogen economy will total chemical solvent leaving a pure stream of hydrogen.
trillions of dollars in the coming decade as sectors This hydrogen is then combined with nitrogen, using the
ranging from transportation, power generation, Haber-Bosch process, to produce ammonia (3H2 + N2
commercial, industrial and manufacturing, and real --> 2NH3).
estate seek to decarbonize operations and align various
ESG commitments. Ammonia produced in the above method, when the CO2
is appropriately sequestered, is often referred to as blue
Heavy industrial production of basic materials like ammonia (see future papers on CO2 uses and solutions).
petrochemicals, steel, aluminum and cement, as well as Ammonia can also be produced from hydrogen made
other energy-intensive activities like shipping, aviation through the electrolysis of water with renewable energy
and road freight are often termed hard-to-abate sectors and is then referred to as green ammonia.
given the higher abatement cost to switch to lower
carbon technologies. These sectors require sustainable Until very recently, ammonia was primarily used in
economic pathways to reduce carbon and transition fertilizer and the chemical manufacturing of plastics,
to greener fuel use and explosives, textiles and other industrial products. But
demand high-density today, several characteristics make ammonia a highly
fuels that are easy to functional and desirable means of storing and
transport, requiring a transporting zero-carbon energy at a very
complete overhaul of the large scale.
global bulk energy mix.

Ammonia is a stable
compound and cost-
effective transporter of
hydrogen. Ammonia is
currently produced in Haber-Bosch process:
large quantities using Pure hydrogen
commercially proven catalytically reacted
processes that often starts with with pure nitrogen
natural gas (NG) as the feedstock. in a reactor to form
anhydrous liquid
ammonia

Golar LNG | Black & Veatch


Hilli, a first of a kind FLNG conversion
Golar: Owner/operator
Black & Veatch: Topsides solution provider

Why Ammonia Instead of Hydrogen


In the effort to accelerate the zero-carbon energy future, decarbonization efforts must balance a complex web
of political and regulatory considerations, long-term capital asset decisions and the presence of incumbent
technologies and market participants. As governments, consumers and industry leaders seek to lower carbon
emissions, ammonia offers a level of scale, portability and flexibility the developing green hydrogen market will not
achieve for decades.

Liquid ammonia is more energy dense than liquid hydrogen, allowing it to store more energy at the same volume.
Liquefied ammonia also provides a safer, cheaper and less energy-intensive means of transport across long
distances than the transport of liquified hydrogen.

Energy Efficiency
Energy/Weight Energy/Volume Liquid Temperature
(Energy out/Energy
(kJ/kg) (kJ/m3) (C)
In)
Hydrogen (Compressed Gas) 120,000 2,110,132 -253 83%
Hydrogen (Liquid) 120,000 9,323,189 -253 56%
Ammonia 18,600 11,457,600 -33 62%
LNG 49,000 21,217,000 -162 93%
(1) Table is based on lower heating values (LHV)
(2) Energy/Volume based on storage conditions
(3) Compressed hydrogen is at 245 barg and 20 C

Upon delivery, ammonia can be used directly as a fuel or converted back to hydrogen by cracking technology. In
either scenario a clean-burning fuel, that releases no CO2 at the point of combustion, is available. This combination
highlights ammonia’s potential to accelerate the transition to carbon free energy across energy-intensive industries
such as power generation, transportation and green chemicals.

Golar LNG | Black & Veatch


Existing Infrastructure Enables the Blue Ammonia Transition
While moving to fully green hydrogen may be the eventual end-
game of 2050 commitments, the more immediate, compelling and
realistic economic proposition lies first with the adoption of blue
ammonia, which can help reduce many industries’ carbon footprint
while laying the groundwork for further decarbonization gains.

Blue ammonia holds extra promise as it can be produced, stored


and transported using the large-scale ammonia infrastructure
currently in existence. A gas at room temperature, ammonia’s
stability facilitates deployment via multiple modes of transport
thereby expanding its reach. In addition to existing import and
export terminals, a considerable portion of the existing LPG fleet is
capable of transporting ammonia.

Utilization of this infrastructure will be critical as new hydrogen


powered technologies including combustion turbines and fuel cells
(in particular) are deployed in regions where production of, or easy
access to green hydrogen, will lag. This ability to rapidly deploy
ammonia to energy-intensive demand centers will help achieve
increasingly aggressive climate targets.

Golar LNG | Black & Veatch


Floating Versus Onshore Ammonia Production
Together, Golar and Black & Veatch’s experience and Black & Veatch’s FLNG partnership. These mobile assets
success with FLNG solutions has shown that floating do everything from processing the gas onboard the
vessels – whether designed for nearshore or offshore vessel, to offloading the LNG to tankers for transport.
use – offer a number of advantages to traditional They are versatile, allowing access to offshore gas fields
onshore facilities. that are otherwise uneconomic.

Compared to land-based facilities, the development of An additional strength of floating blue ammonia
floating LNG liquefaction vessels offers a faster return production is associated with CO2. After capturing the
on investment due to the shorter period from final CO2, there will be a need for necessary infrastructure
investment decision (FID) to commercial operation. This to transport and deposit the gas to the nearest feasible
is in large part due to shipyard construction often being carbon storage unit. It is the very real possibility that
more efficient than building onshore. Floating units are there might be existing infrastructure in place to allow
also not fixed to one location and mobility can extend for direct disposal of the captured CO2 to depleted
the life of the facility by redeploying to new resource wells through existing pipelines which potentially
locations. could significantly reduce the cost associated with
the liquefaction, transportation and storage of CO2 at
It is likely that these same benefits can be obtained with another location.
floating blue ammonia production units (FNH3). We
envision the possibility of the use of these units, similar
to natural gas liquefaction and storage on ships by
building upon the established track record of Golar and

Golar LNG | Black & Veatch


Conclusion
To meet government commitments, companies must look at their current and future long-term assets through the
lens of becoming net-zero by 2050, operational decisions and fuel choices made today will have ramifications for
decades. Skeptics are quick to note that hydrogen has been teased as the fuel of the future before; however, many
energy companies and asset owners are looking for opportunities to divest fossil assets and balance portfolios
with decarbonization top of mind. This range of commercial and regulatory forces aligning behind its use, and its
ability to scale rapidly across the value chain indicates ammonia, both blue and green, will be a key element in the
decarbonization effort.

By embracing decarbonization, reevaluating current revenue streams, and being open to new revenue
opportunities, companies can achieve their 2050 decarbonization targets in a sustainable way.

Future papers in the series: Floating Ammonia Facilities - CO2 Capture and Uses

For more information please visit bv.com, golarlng.com


Please contact us [email protected], [email protected]

Additional resources:

Golar LNG’s Commitments to ESG and Sustainability


https://www.golarlng.com/sustainability

Black & Veatch Joins Hydrogen Council, Reflecting Commitment to Hydrogen as a Zero-Carbon Solution
https://www.bv.com/news/black-veatch-joins-hydrogen-council-reflecting-commitment-hydrogen-zero-carbon-solution

Black & Veatch 2020-2023 Sustainability Strategy


https://www.bv.com/resources/black-veatch-2020-2023-sustainability-strategy

Hybrid LNG & Ammonia Infrastructure: Key to a Green Economy eBook


https://www.bv.com/resources/hybrid-lng-ammonia-infrastructure-key-green-economy-ebook

Ammonia: Fuel vs. Hydrogen Carrier


https://www.bv.com/perspectives/ammonia-fuel-vs-hydrogen-carrier

Hydrogen Takes Center Stage


https://www.bv.com/resources/hydrogen-takes-center-stage

Golar LNG | Black & Veatch

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