Ammonia is usually used as a fertilizer and causes a lot of CO2 emissions in its production process. However, many countries, including Japan, Australia, the Netherlands, and the UK have started implementing “green ammonia” as a form of renewable energy. In 2026, the largest green ammonia plant will begin construction in the Eastern Cape of South Africa, in Nelson Mandela Bay. The plant will cost $4.6 billion and is projected to create at least 20,000 jobs in the region.
Green Ammonia vs. Brown Ammonia
“Brown” ammonia is the combination of nitrogen and hydrogen commonly known to act as a fertilizer. It is crucial for the agricultural industry; without it, we would only be able to produce about half of the food that we produce in the world today. In addition, it is used to create pharmaceutical products, cleaning products, and explosives for the mining industry. Synthesized industrially, it is made by combining nitrogen from the air with hydrogen stripped from natural gas using high pressures and temperatures. It releases carbon dioxide into the atmosphere in amounts that are nearly twice the amount of usable ammonia produced. In total, it is responsible for 1.8% of global CO2 emissions.
On the other hand, Green ammonia is made by creating hydrogen with water instead of natural gas. The process then remains the same, except it will be powered by electricity produced by renewable sources. It is predicted that green ammonia will be used as the primary fuel for the shipping industry, which currently makes up 3% of global CO2 emissions. Based on a report by the International Energy Agency, ammonia will need to make up 45% of the global energy supply for shipping to meet the net zero emission goals in 2050. The green ammonia market was only valued at $36 million in 2021, but is projected to grow to $5.4 billion by 2030.
South Africa’s Plant
The company building the plant is Hive Hydrogen South Africa, backed by Hive Energy and Built Africa. The team has been working on this project since September 2019, and is planning to establish five large hydrogen and ammonia plants in South Africa, including the establishment of the $4.6 billion green ammonia plant. It will be powered by an electrical supply in the Coega Special Economic Zone, where the unemployment rate is a high 50% as a result of the pandemic. It is projected to produce 780,000 tons of green ammonia per year. According to Hive Hydrogen, South Africa is an ideal place for green hydrogen and ammonia plans because it has “world-class renewable resources, good harbors, and a high standard of local skills.”
Impacts
The scale of South Africa’s green ammonia plant is a declaration of the country’s confidence in green ammonia and the future of renewable energy. Further investment in green ammonia and other renewable resources is a global movement that will inevitably revolutionize the energy industry in the future, especially the shipping industry in this specific case. It is due to destroy many traditional fuel jobs, but also create many new ones in the renewable industry. Green ammonia is just one example of creative destruction in today’s ever-changing world.
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