Utility and System Design For Green Ammonia
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Abstract
Ammonia is a crucial chemical compound in global food production, primarily as an essential component of fertilizers in its anhydrous form. However, there has been increasing concern over the environmental impact of ammonia production, as the conventional industrial process, which relies on methane, generates substantial carbon dioxide emissions. To mitigate ammonia’s carbon footprint, more environmentally friendly production methods are necessary. This report presents a sustainable approach to ammonia production, featuring a comprehensive design for a green ammonia production system. The proposed system includes a detailed Haber-Bosch plant design, a renewable wind and solar utility design using local weather patterns, and sustainable sourcing of nitrogen and hydrogen via air separation and water electrolysis. This process, when operating at full capacity, can produce 450 metric tons of anhydrous ammonia daily and is located in Des Moines, Iowa. Profitability analyses were performed for two scenarios—one where the process is connected to the grid and one where it is fully disconnected and uses a battery instead. Using a discount rate of 10% and a nominal ammonia selling price of $700 per metric ton, a thorough sensitivity analyses showed that the best-case scenario for grid connection, yields an internal rate of return of 11.46%, and a net present value of $71.3 million. The best-case scenario for a nongrid connection with a battery, results in an internal rate of return of 8.11%, and a net present value of -($126) million. The selling price of ammonia and discount rate can affect the IRR and NPV, but the ones reflected above were used as nominal or base case values. While a grid connected system showed more profitability, a fully off-grid system still shows promise.