[ software demonstration ]
Table 3 . Main business KPIs |
KPI |
Value |
Project CAPEX ( M €) |
372 |
Project OPEX ( M €) |
79.04 |
H 2 Average Yearly Revenue ( M €) |
5.39 |
NH 3 Average Yearly Revenue ( M €) |
164.40 |
Project NPV ( M €) |
262.24 |
Project IRR ( M €) |
16.8 % |
Note : The data presented in the table refers to a project with a wind |
farm nominal power of 324 MW , an electrolyzer nominal power of |
250 MW , and an ammonia production capacity of 400 tons per day . |
Several strategies could be considered to achieve this goal :
• Develop the project using a multi-stage plant to benefit from a reduction in the specific cost of energy over time
• Evaluate the ideal timing for investment based on CAPEX and OPEX projections
• Seek public financial support to secure funding assistance
Conclusion
The pre-feasibility study indicates that establishing a green ammonia production plant in the Magallanes region is both technically viable and economically promising . The integration of wind energy ensures a sustainable and renewable power source , while the use of advanced electrolysis and Haber-Bosch technologies can significantly reduce CO 2 emissions compared to traditional methods .
References
¹ Energy Reports 6 ( 2020 ): 1897 – 1909 . ² Brown , T . ( 2018 , January 19 ). The capital intensity of small-scale ammonia plants . Ammonia Energy Association . ³ Renewable and Sustainable Energy Reviews 173 ( 2023 ): 113057 .
4
International Journal of Hydrogen Energy 46.26 ( 2021 ): 13709 – 28 .
5
Renewable and Sustainable Energy Reviews 199 ( 2024 ): 114517 .
6
IEA . ( 2023 , June 29 ). Comparison of the emissions intensity of different hydrogen production routes , 2021 .
7
IEA . ( 2023 , November 17 ). Levelised Cost of Hydrogen Maps .
8
IRENA . ( 2019 ). Future of wind : Deployment , investment , technology , grid integration , and socioeconomic aspects ( Executive summary ).
9
Knop , V . ( 2022 , January 23 ). Life Cycle Analysis of hydrogen compression . AWOE .
10
Koch Blank , T ., & Molly , P . ( 2020 , January ). Hydrogen ’ s Decarbonization Impact for Industry . Rocky Mountain Institute .
¹¹ Kolodziejczyk , B . ( 2023 , March 6 ). How to understand the carbon footprint of green hydrogen . World Economic Forum .
¹² Dirección General de Aguas . ( n . d .). Legislación y normas . Ministerio de Obras Públicas .
¹³ Energy Environ Sci 13 ( 2020 ): 331 – 44 .
Despite the current high production costs of green ammonia , projections suggest that advancements in technology and cost reductions could make it competitive by 2030 . The strong commitments to
CO 2 emissions reduction by potential off-takers in the European Union and Japan further enhance the project ’ s attractiveness . The study emphasizes the importance of addressing economic , regulatory , and resource barriers to ensure successful implementation and operation .
Key challenges include securing financing , obtaining necessary permits , and ensuring a reliable supply of renewable energy and water .
About Southern Lights
Southern Lights is a Stockholm-based software company that specializes in digital tools for the greenfield stages of hydrogen , ammonia , and Power-to-X project development . Its software is designed to facilitate project design , simulation , optimization , and feasibility assessment , from the early idea stage through to pre-FEED . The software is designed to reduce human hours while improving precision and competitiveness . Developed by leading experts in energy project development and software engineering , the solution combines extensive project experience with state-of-the-art energy and process models for practical , real-world business use .
Hydrogen Tech World | Issue 19 | December 2024 39