Countdown to green anhydrous ammonia

[chuckChuck]

https://www.manitobacooperator.ca/news-opinion/news/countdown-to-green-anhydrous-ammonia/?utm_source=GFM+Publications&utm_campaign=99c099d5 b4-Manitoba+Co-operator+daily+enews+Dec+09%2C+2022&utm_medium=ema il&utm_term=0_2da8244677-99c099d5b4-%5BLIST_EMAIL_ID%5D&mc_cid=99c099d5b4&mc_eid=006b2 8ff62

Countdown to green anhydrous ammonia
On-farm, low-emissions anhydrous ammonia production touted as fertilizer disruptor

By Alexis Stockford
Reading Time: 4 minutes


News
A FuelPositive containerized production system. The system combines hydrogen produced from water through electrolysis and nitrogen extracted from the air to produce anhydrous ammonia that can be stored on-farm.

Green ammonia production is about to be put through its paces on one southern Manitoba farm.

Green energy company FuelPositive, based in Waterloo, Ont., says its inaugural farm-scale demonstration system will be deployed in January near Sperling. The system is set to be installed on R&L Acres, operated by Tracy and Curtis Hiebert.

Why it matters: Green ammonia promises anhydrous ammonia produced on-farm without the greenhouse gas footprint or market volatility.

FuelPositive chair and CEO Ian Clifford says the company expect to complete factory tests on the system by the end of this month, with a final shipping date in the New Year.

“It’s version zero,” he said. “It’s our full-scale production pilot system and it’s designed to have a good year of operation on their farm. We want to take it through all four seasons and optimize it as we learn more about how it responds to dramatic temperature changes … intermittent power outages, those sorts of things.”

FuelPositive has pitched the technology as an emissions-friendly alternative to traditional anhydrous ammonia. The company’s model uses electricity to siphon hydrogen out of water, as well as a nitrogen generator to draw the nutrient from the air. A patent-pending ammonia synthesis converter manufactures ammonia from those base elements.

The system will ideally draw on sustainable electricity sources provided by the farmer.

The company has high hopes for the technology. Statements on the FuelPositive website claim the system will “revolutionize clean energy through a patent-pending, first-of-its-kind technology invented in Canada,” and disrupt the “traditional ammonia industry.”

For farmers, FuelPositive has marketed the system as a way to escape the mercies of the market. On-site production means the system will dodge supply chain headaches, while volatile prices would avoided, the company says.

That angle appealed to Curtis Hiebert when he considered putting his farm forward as the Western Canadian litmus test for the system.

“The main reason is so we can produce the product at our location and then we can have a supply there that we don’t have to wait [for] and have transport issues and that sort of thing,” he said.

He was also attracted to the idea of ammonia at a stabilized price.

“It seems like the price of anhydrous goes up whenever natural gas goes up and it doesn’t come down when natural gas comes down,” he said, adding that a shifting anhydrous price also makes it difficult to lock in his operating costs.

The unit going onto the Hiebert farm is expected to produce about 300 kilograms of green anhydrous ammonia and use 476 kilograms (125 gallons) of water per day.

Depending on electricity costs, FuelPositive estimates that operating the plant will cost the producer around $560 per tonne of ammonia, significantly less than the fertilizer costs observed in 2022.

Hiebert’s 200-kilowatt solar array is expected to reduce energy costs. Hiebert noted that more solar capacity could be added if needed. Manitoba’s easy access to hydroelectric power also puts the province at potential advantage.

The project has been delayed several times. FuelPositive says it has fallen prey to the same pandemic-driven supply chain issues that plagued most manufacturers.

Earlier in 2022, the company said it hoped to get Hiebert’s system operational by the end of summer. That changed to December 2022 and has now been pushed to early 2023.

Operating the plant will allow Hiebert to calculate its operating costs and his energy bill. He expects the plant to supply 15 to 20 per cent of his ammonia next year.

Real-world validation of the technology is ongoing, although FuelPositive has already opened pre-sales. Producers can expect a base price $950,000 for the system, depending on the farm.
FuelPositive staff work to develop and factory test the company’s green ammonia on-farm plant technology. photo: FuelPositive

FuelPositive says each unit will last “several decades, with periodic upgrades.”

“It’s a 20-30 year system at least,” Clifford says. “So it’s a permanent fixture on farm.”

Pre-sales deposits involve a “minimal commitment” of less than $10,000.

Hiebert says the per-tonne cost will make or break the project.

“That’s what we’re going to learn. When they’re producing at our facility, what the cost of the energy is going to be that’s going to be utilized to make the anhydrous… Financing too is going be one of the costs that we have to look at in order to know whether we want to go ahead full bore and go ahead with this in a major way to change our farm.”

R&L Acres will likely have a role in farmer adoption in Western Canada if all goes well, according to FuelPositive.

Clifford said he hopes to hold field tours in 2023 so interested parties can see the system in action.

“[Farmers] like to literally go and kick the tires. They like to talk to other farmers that have [the equipment] and really experience whatever it is they’re investing in first-hand. There are many, many farmers today who are waiting for that system to be on-farm so that they can visit the Hieberts. They can see it on-site, they can see it operating,” he said.

The Manitoba project will be proof of concept for FuelPositive, which hopes to eventually export the technology globally.

The company has not revealed its pre-sales but Clifford says there has been enough business for the company to plan for mass production in 2023.

Interest so far has included inquiries from Africa, Europe, Australia and throughout North America.

[chuckChuck]

A 200 kw solar array plus cheaper renewable hydro in Manitoba will make on farm fertilizer!

Yikes this will throw the renewables dont work crowd into a tizzy.

Renewable storage and cheaper fertilizer if it all goes well. What is not to like?

[AlbertaFarmer5]

Chuck, I know you just post this sort of thing to be confrontational. But this application for unreliable intermittent energy makes imminent sense. I've been saying that all along. I am cautiously optimistic that the economics will make this viable.
But I would take that one step further. As I said, this is the ultimate best possible use for unreliable energy, so if this does not turn out to be economical, then we might as well admit that any other application is hopeless.

[chuckChuck]

Chuck, I know you just post this sort of thing to be confrontational. But this application for unreliable intermittent energy makes imminent sense. I've been saying that all along. I am cautiously optimistic that the economics will make this viable.
But I would take that one step further. As I said, this is the ultimate best possible use for unreliable energy, so if this does not turn out to be economical, then we might as well admit that any other application is hopeless.

Hell just froze over. A5 admitting renewables might have some value after all! LOL

It's relatively early days in renewable implementation and they are already kicking ass on costs compared to new coal and gas in many places.

And just like cell phones were once very large and expensive, costs went down and features and quality went up.

So the assumption that this early on farm fertilizer prototype from renewables will determine the future of whether renewables are economical as a source of electricity is a bit of a laugh.

But you have been telling us all along that renewables have driven up the cost of electricity in every market without proof nor an admission that many of the examples you cite are based on older and more expensive technology.

Nor did you have evidence or a breakdown of what and where the costs were. Because generation is only a portion of the costs in any electrical system.

And a lot depends on how many intermittent renewables are added into any system.

You need only look in your own backyard for proof that renewables are indeed economic and one way to add lower cost lower emission supply to the system.

[Hamloc]

Chuck, I know you just post this sort of thing to be confrontational. But this application for unreliable intermittent energy makes imminent sense. I've been saying that all along. I am cautiously optimistic that the economics will make this viable.
But I would take that one step further. As I said, this is the ultimate best possible use for unreliable energy, so if this does not turn out to be economical, then we might as well admit that any other application is hopeless.

In my area most retailers have quit selling anhydrous ammonia. Out of say 30 farmers in my immediate area only 1 still uses anhydrous ammonia. The cost and hassle of tank certification just doesn’t make it worth it anymore. Plus getting companies to pre price much more difficult than filling the bins with a granular blend. Government regulation as with most good things brings it to an end.

[AlbertaFarmer5]

In my area most retailers have quit selling anhydrous ammonia. Out of say 30 farmers in my immediate area only 1 still uses anhydrous ammonia. The cost and hassle of tank certification just doesn’t make it worth it anymore. Plus getting companies to pre price much more difficult than filling the bins with a granular blend. Government regulation as with most good things brings it to an end.

Now imagine that in addition to having the portable tanks certified, the farmer now has to own enough storage for an entire Year's supply with all of the capital costs and ongoing regulatory costs involved in that.
But if the cost can end up somewhere close to free using unreliable energy, then maybe those storage costs and application equipment is a small price to pay.

I believe making granular is a much more machinery intensive operation, which probably is not feasible on smaller scales, but that would be the ultimate solution. I believe it is dropped from a large Tower and forms the granules as it cools

[shtferbrains]

Approx 500# N per day nameplate (theoretical as no complete plant) so about 5 to 10 acres a day for $950k + production and operating expenses.
I assume you would need grid tied solar to run 24hrs so 15%+ for your credit?
The farm has 11000 acres.
Storage does appear to be ONE of the deal breakers.
Intermittent operation is a killer for commercial sized Nh3 plants.
When they shut down once a year for maintenence they take some time to get started.
You get your name on the list Chuck and let us know in about 10 yrs how your making out.

More pie in the sky.

[WiltonRanch]

Couldn’t you add water and band it as a liquid? Seen a farmer did that in some magazine once. I’ve been interested in this concept since they started working on it in Iowa. This is the best use of solar and wind generation. No batteries and direct conversion to something immediately useful which is a large user of energy and huge emitter of ghg’s when produced by present technologies. Far as ammonia being a sink for electricity or motive energy source it doesn’t fly. To boot it’s dangerous enough to transport so using it close to point of manufacture is safer.

[chuckChuck]

Except LNG, nuclear waste and a host of other products are also dangerous to transport.

Ammonia and hydrogen and LNG exports are planned from Canada's east and west coast to distant customers.

But farmers producing their own fertilizer? Whats not to like?

With all the increasing demand for electrification we are going to need lots of renewables with storage and base load sources.

[chuckChuck]

https://www.iea.org/news/renewable-power-s-growth-is-being-turbocharged-as-countries-seek-to-strengthen-energy-security

The latest report From the International Energy Agency

Renewable power’s growth is being turbocharged as countries seek to strengthen energy security
06 December 2022

The global energy crisis has triggered unprecedented momentum behind renewables, with the world set to add as much renewable power in the next 5 years as it did in the past 20

The global energy crisis is driving a sharp acceleration in installations of renewable power, with total capacity growth worldwide set to almost double in the next five years, overtaking coal as the largest source of electricity generation along the way and helping keep alive the possibility of limiting global warming to 1.5 °C, the IEA says in a new report.

Energy security concerns caused by Russia’s invasion of Ukraine have motivated countries to increasingly turn to renewables such as solar and wind to reduce reliance on imported fossil fuels, whose prices have spiked dramatically. Global renewable power capacity is now expected to grow by 2 400 gigawatts (GW) over the 2022-2027 period, an amount equal to the entire power capacity of China today, according to Renewables 2022, the latest edition of the IEA’s annual report on the sector.

This massive expected increase is 30% higher than the amount of growth that was forecast just a year ago, highlighting how quickly governments have thrown additional policy weight behind renewables. The report finds that renewables are set to account for over 90% of global electricity expansion over the next five years, overtaking coal to become the largest source of global electricity by early 2025.

“Renewables were already expanding quickly, but the global energy crisis has kicked them into an extraordinary new phase of even faster growth as countries seek to capitalise on their energy security benefits. The world is set to add as much renewable power in the next 5 years as it did in the previous 20 years,” said IEA Executive Director Fatih Birol. “This is a clear example of how the current energy crisis can be a historic turning point towards a cleaner and more secure energy system. Renewables’ continued acceleration is critical to help keep the door open to limiting global warming to 1.5 °C.”

The war in Ukraine is a decisive moment for renewables in Europe where governments and businesses are looking to rapidly replace Russian gas with alternatives. The amount of renewable power capacity added in Europe in the 2022-27 period is forecast to be twice as high as in the previous five-year period, driven by a combination of energy security concerns and climate ambitions. An even faster deployment of wind and solar PV could be achieved if EU member states were to rapidly implement a number of policies, including streamlining and reducing permitting timelines, improving auction designs and providing better visibility on auction schedules, as well as improving incentive schemes to support rooftop solar.

Beyond Europe, the upward revision in renewable power growth for the next five years is also driven by China, the United States and India, which are all implementing policies and introducing regulatory and market reforms more quickly than previously planned to combat the energy crisis. As a result of its recent 14th Five-Year Plan, China is expected to account for almost half of new global renewable power capacity additions over the 2022-2027 period. Meanwhile, the US Inflation Reduction Act has provided new support and long-term visibility for the expansion of renewables in the United States.

Utility-scale solar PV and onshore wind are the cheapest options for new electricity generation in a significant majority of countries worldwide. Global solar PV capacity is set to almost triple over the 2022-2027 period, surpassing coal and becoming the largest source of power capacity in the world. The report also forecasts an acceleration of installations of solar panels on residential and commercial rooftops, which help consumers reduce energy bills. Global wind capacity almost doubles in the forecast period, with offshore projects accounting for one-fifth of the growth. Together, wind and solar will account for over 90% of the renewable power capacity that is added over the next five years.

The report sees emerging signs of diversification in global PV supply chains, with new policies in the United States and India expected to boost investment in solar manufacturing by as much as USD 25 billion over the 2022-2027 period. While China remains the dominant player, its share in global manufacturing capacity could decrease from 90% today to 75% by 2027.

Total global biofuel demand is set to expand by 22% over the 2022-2027 period. The United States, Canada, Brazil, Indonesia and India make up 80% of the expected global expansion in biofuel use, with all five countries having comprehensive policies to support growth.

The report also lays out an accelerated case in which renewable power capacity grows a further 25% on top of the main forecast. In advanced economies, this faster growth would require various regulatory and permitting challenges to be tackled and a more rapid penetration of renewable electricity in the heating and transport sectors. In emerging and developing economies, it would mean addressing policy and regulatory uncertainties, weak grid infrastructure and a lack of access to affordable financing that are hampering new projects.

Worldwide, the accelerated case requires efforts to resolve supply chain issues, expand grids and deploy more flexibility resources to securely manage larger shares of variable renewables. The accelerated case’s faster renewables growth would move the world closer to a pathway consistent with reaching net zero emissions by 2050, which offers an even chance of limiting global warming to 1.5 °C.

[Hamloc]

I did some quick math from the original article posted by Chuck2.
The system produces 300 kg. a day.
Which works out to 109500 kg. a year.
This works out to 197897 lbs. of actual N.
At 70 lbs. of actual N per acre this would fertilize 2827 acres. Is that worth the $950000 price tag? It could be. A few questions, does it produce 365 days a year? Does it produce more in the summer and less in the winter? It certainly could work. My other concern would be what government regulations apply and how they would change over time.

[WiltonRanch]

Realistically this system would be ideal for a 2500 acre cereal/canola operation. Even more if it grew peas or lentils. If nitrogen stays at $1/lb and increases over time it looks feasible. If and a big if this technology improves over time it should get more efficient and cost effective and if ammonia powered tractors become a thing theoretically a farm could be self sufficient with nitrogen and fuel. Still this is 50 years away and maybe my grandkids will see it beneficial. In the meantime we all suffer with political “solutions”. That is what makes me fearful and angry.

[chuckChuck]

Glad to see that most rational people see the potential of turning renewables into ammonia and hydrogen.

Its early days and too soon to know whether it will be successful.

Most of us will be done farming long before.

Crop producers who got decent weather in the last few years are less fearful than those who didn't.

It was reported this year that Swift Current has been 4 inches below average per year of precipitation in the about the last 10 years. Drier than the thirties.

Those who don't get enough rain year after year should be fearful as the southern prairies gets warmer and drier.

Cattle producers are more fearfull as they can't compete for more expensive land and have relatively little profit year after year. It was reported in the Western Producer that a 200 head cow calf operation generated only $19,000 of net income. You can make more than that working a minimum wage job in most provinces.

Outside the country money and inside investors and oversiszed farms are driving up the price of land. Good if you are selling not so great if you are a young farmer looking to expand without mommy and daddy's help.

Governments currently provide significant support for ag through crop insurance and safety net programs.

The biggest risks we face are weather, price of inputs and markets.

Government policy around climate change is a very small issue relative to all the other risk impacts.

The current rise in energy prices is almost all due to rising oil and gas prices with a smaller portion due to taxation.

[AlbertaFarmer5]

Outside the country money and inside investors and oversiszed farms are driving up the price of land.

Interesting comment, ( and spelling). Not sure how this deflection is relevant to on farm ammonia production?
So who gets to decide what is an oversized farm? Jealous, bitter, spiteful envious former CWB socialists who are afraid someone else might work harder than them and get ahead?
Would I qualify as an oversized farm? Easily the biggest grain farm in the county, which is itself, the 4th biggest county in the province. But my farm would fit inside of SF3's farm many times over. And his farm is a dwarf compared to some of the really successful farmers.

[chuckChuck]

So you will happily let oversees investors with Canadian fronts and large corporations take over control of more and more land?

The word is Kambeitz farms have Chinese backing and Monette farms have South African money. And lots of it.

Are you in favour of Chinese investors controlling more and more Canadian farms?