As countries introduce net zero emission (NZE) goals, the need for low-carbon energy sources has become increasingly urgent. This study explores the potential of using ammonia as a clean fuel to contribute to the decarbonisation of various industries.
There are well-established technologies for the commercial production of clean ammonia including water electrolysis powered by renewable energy (renewable ammonia), natural gas reforming and coal gasification, both integrated with carbon capture utilisation and storage (CCUS) (low-carbon ammonia). New technologies are also emerging. Both renewable and low-carbon ammonia (regarded as clean ammonia) have life cycle greenhouse gas emissions significantly lower than unabated fossil fuels and most other carbon-based alternative fuels. Therefore, the utilisation of clean ammonia as a fuel provides a viable pathway to decarbonise various industries. Ammonia combustion or cofiring technologies can be employed for a range of processes including power generation, maritime shipping and industrial processes such as cement and ceramics making, and steel processing, and apply to both existing and new facilities, making ammonia fuel a technical enabler for the decarbonisation of these sectors.
Ammonia combustion technologies are likely to reach commercial maturity in the near term and could become economically competitive if supportive policies are in place for decarbonising power generation and shipping. This report assesses the decarbonisation potential of clean ammonia use as a fuel. The national policies and targets of using ammonia fuel in coal power plants, and the international and regional decarbonisation targets for the shipping industry are reviewed. Developments in ammonia combustion technologies are examined, and the potential emissions reduction that could be achieved by substituting unabated fossil fuels with clean ammonia fuel for these sectors are evaluated.
