Flexible Green Ammonia Production: Impact of Process Design on the Levelized Cost of Ammonia

Abstract

This study evaluates the economic feasibility of flexible, renewable ammonia production in Italy through a comprehensive sensitivity analysis of the levelized cost of ammonia (LCOA). Ammonia is produced through Haber–Bosch synthesis from green hydrogen and nitrogen coming from alkaline electrolysis and cryogenic air separation, respectively. The analysis examines the impact of key parameters such as renewable source peak power, Haber–Bosch reactor flexibility, energy mix, electrochemical and hydrogen storage, on the final production cost. The location considered for the PV and wind power output is Southern Italy. The results show that a wind-driven system with minimal battery storage and a flexibility factor (ratio between the minimum operating capacity and the nominal capacity of the plant) of 20% offers the most cost-effective solution, but production is scaled down to 64 tpd. With the 2030 cost structure, battery storage offers better integration with wind systems and flexible operation, even at low levels of turndown. For different combinations of process design choices and flexibility, the optimal LCOA for a green ammonia production is approximately 0.59 USD/kgNH3 in 2050. This cost of production could be competitive with grey ammonia, provided that a carbon emission allowance of USD 0.12/kgCO2 is applied.