System-Level and Techno-Economic Analysis of Ammonia Production From Clean Hydrogen in the Permian Basin in Texas

Ammonia is a promising carbon-free hydrogen carrier and can have a meaningful role in the emerging hydrogen economy. This study conducts technical and techno-economic modeling of an ammonia production facility, which produces ammonia from either blue or green hydrogen using the Haber-Bosch process. Three separate cases are modeled; these account for the energy consumption of ammonia production being met by natural gas (with carbon capture), renewables-based electricity and hydrogen, respectively. Process modeling is conducted using Aspen Plus® to estimate key process parameters and energy/water consumption. This modeling serves to inform the technoeconomic analysis which estimates the levelized cost of ammonia production and the economics of an ammonia producing plant. Our analysis shows that a plant purchasing hydrogen is economically viable in the current ammonia market when the cost of hydrogen is < $4.66/kg H2. Furthermore, our results indicate that renewables-based electricity powered ammonia production has the most favorable economics with low impact of unfavorable pricing conditions on project economics.