The economics of global green ammonia trade – “Shipping Australian wind and sunshine to Germany”

Egerer J, Grimm V, Niazmand K, Runge P (2023)

Publication Language: English

Publication Status: Submitted

Publication Type: Journal article

Future Publication Type: Journal article

Publication year: 2023

Journal

Applied Energy Elsevier

Book Volume: 334

Article Number: 120662

Journal Issue: 120662

URI: https://www.sciencedirect.com/science/article/pii/S0306261923000260

DOI: 10.1016/j.apenergy.2023.120662

Open Access Link: https://www.sciencedirect.com/science/article/pii/S0306261923000260

Abstract

This paper contributes to understanding the transformation of global energy trade to green energy carriers, focusing on green ammonia as the foreseeable first green hydrogen carrier. We provide a comprehensive overview of today's ammonia trade and assess scaling options for the trade of green ammonia. To that aim, we develop an optimization model for the integrated assessment of the green ammonia value chain that covers all steps from green ammonia production in an exporting country, up to delivery to a harbor in an importing country. The model endogenously chooses among different technology options and determines cost minimal operation. In a case study, we apply the model to the large-scale import of ammonia from Australia to Germany in a scenario for 2030. The results show that green ammonia can reach cost parity with gray ammonia even for moderate gas prices (but not necessarily with blue ammonia) if CO2 prices are high enough. We also provide a sensitivity analysis with respect to the interest rate and other key technical and economic parameters and show that cracking ammonia to provide pure hydrogen comes at a 45 % cost markup per MWh at the destination.

Authors with CRIS profile

Jonas Egerer Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie Veronika Grimm Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie Kiana Niazmand Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie Philipp Runge Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie

Related research project(s)

Storage B – Efficient hydrogen logistics Energie Campus Nürnberg (EnCN2) Jan. 1, 2017 - Dec. 31, 2021

How to cite

APA:

Egerer, J., Grimm, V., Niazmand, K., & Runge, P. (2023). The economics of global green ammonia trade – “Shipping Australian wind and sunshine to Germany”. Applied Energy, 334(120662). https://dx.doi.org/10.1016/j.apenergy.2023.120662

MLA:

Egerer, Jonas, et al. "The economics of global green ammonia trade – “Shipping Australian wind and sunshine to Germany”." Applied Energy 334.120662 (2023).

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