Energy and climate policy implications on the deployment of low-carbon ammonia technologies

Abstract The economic feasibility of low-carbon ammonia production pathways, such as steam methane reforming with carbon capture and storage, biomass gasification, and electrolysis, is assessed under various policy frameworks, including subsidies, carbon pricing, and renewable hydrogen regulations....

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Main Authors: Chi Kong Chyong, Eduardo Italiani, Nikolaos Kazantzis
Format: Article
Language:English
Published: Nature Portfolio 2025-01-01
Series:Nature Communications
Online Access:https://doi.org/10.1038/s41467-025-56006-6
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author Chi Kong Chyong
Eduardo Italiani
Nikolaos Kazantzis
author_facet Chi Kong Chyong
Eduardo Italiani
Nikolaos Kazantzis
author_sort Chi Kong Chyong
collection DOAJ
description Abstract The economic feasibility of low-carbon ammonia production pathways, such as steam methane reforming with carbon capture and storage, biomass gasification, and electrolysis, is assessed under various policy frameworks, including subsidies, carbon pricing, and renewable hydrogen regulations. Here, we show that employing a stochastic techno-economic analysis at the plant level and a net present value approach under the US Inflation Reduction Act reveals that carbon capture and biomass pathways demonstrate strong economic potential due to cost-effectiveness and minimal public support needs. Conversely, the electrolytic pathway faces significant economic challenges due to higher costs and lower efficiency. We conclude that efficient decarbonization of ammonia production requires adapting the Haber-Bosch process for variable bioenergy quality, ensuring safe CO2 transport and storage, advancing research to lower costs and improve efficiency in renewable energy and storage technologies, as well as creating a technologically neutral policy framework.
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spelling doaj-art-2876f3165e044aba942517c917f856612025-01-19T12:32:15ZengNature PortfolioNature Communications2041-17232025-01-0116111310.1038/s41467-025-56006-6Energy and climate policy implications on the deployment of low-carbon ammonia technologiesChi Kong Chyong0Eduardo Italiani1Nikolaos Kazantzis2Oxford Institute for Energy StudiesCenter on Global Energy Policy, School of International and Public Affairs, Columbia UniversityDepartment of Chemical Engineering, Worcester Polytechnic InstituteAbstract The economic feasibility of low-carbon ammonia production pathways, such as steam methane reforming with carbon capture and storage, biomass gasification, and electrolysis, is assessed under various policy frameworks, including subsidies, carbon pricing, and renewable hydrogen regulations. Here, we show that employing a stochastic techno-economic analysis at the plant level and a net present value approach under the US Inflation Reduction Act reveals that carbon capture and biomass pathways demonstrate strong economic potential due to cost-effectiveness and minimal public support needs. Conversely, the electrolytic pathway faces significant economic challenges due to higher costs and lower efficiency. We conclude that efficient decarbonization of ammonia production requires adapting the Haber-Bosch process for variable bioenergy quality, ensuring safe CO2 transport and storage, advancing research to lower costs and improve efficiency in renewable energy and storage technologies, as well as creating a technologically neutral policy framework.https://doi.org/10.1038/s41467-025-56006-6
spellingShingle Chi Kong Chyong
Eduardo Italiani
Nikolaos Kazantzis
Energy and climate policy implications on the deployment of low-carbon ammonia technologies
Nature Communications
title Energy and climate policy implications on the deployment of low-carbon ammonia technologies
title_full Energy and climate policy implications on the deployment of low-carbon ammonia technologies
title_fullStr Energy and climate policy implications on the deployment of low-carbon ammonia technologies
title_full_unstemmed Energy and climate policy implications on the deployment of low-carbon ammonia technologies
title_short Energy and climate policy implications on the deployment of low-carbon ammonia technologies
title_sort energy and climate policy implications on the deployment of low carbon ammonia technologies
url https://doi.org/10.1038/s41467-025-56006-6
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AT eduardoitaliani energyandclimatepolicyimplicationsonthedeploymentoflowcarbonammoniatechnologies
AT nikolaoskazantzis energyandclimatepolicyimplicationsonthedeploymentoflowcarbonammoniatechnologies