Clean ammonia is fast emerging as the front runner in global decarbonization efforts in various hard-to-abate sectors from power generation and maritime shipping. Domestically, clean ammonia is shaping to be a vital component of a pragmatic U.S. energy transition future. Recent advancements in technology, favorable regulatory policies, sizable federal subsidies, and corporate sustainability initiatives have paved the way for the development of clean and low-carbon ammonia projects in the U.S. The importance of clean ammonia “as a carrier” for the uptake of low-cost or clean hydrogen cannot be overstated with a significant export potential due to foreign governments’ decarbonization initiatives and corporate clean power sourcing.
Why Ammonia? What are Key Regulatory Incentives?
Ammonia, which does not emit CO2 when burned, has chemical and physical properties ideally suited for increasing the role of hydrogen in the energy ecosystem of the future. Ammonia does not require cooling at extreme temperatures, and has a higher energy density than liquid hydrogen, making it more efficient to store and transport using the current shipping fleet. Furthermore, producing ammonia with renewable energy results in zero or minimal greenhouse gas emissions for low-carbon ammonia where CO2 produced during ammonia production is captured and sequestered. There is significant government funding, tax