An Economic Analysis of Mid- to Long-Term Prospects for Deep-Sea Offshore Wind-Power-to-Ammonia: A Case Study of Fujian Province

Deep-sea offshore wind power is crucial for reducing emissions in certain regions’ energy transitions. However, its development has been largely overlooked due to its high investment costs and fluctuation. Ammonia production offers a significant opportunity to enhance economic feasibility and facili...

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Main Authors: Xiaoying Zheng, Pei Liu
Format: Article
Language:English
Published: MDPI AG 2024-12-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/17/24/6301
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author Xiaoying Zheng
Pei Liu
author_facet Xiaoying Zheng
Pei Liu
author_sort Xiaoying Zheng
collection DOAJ
description Deep-sea offshore wind power is crucial for reducing emissions in certain regions’ energy transitions. However, its development has been largely overlooked due to its high investment costs and fluctuation. Ammonia production offers a significant opportunity to enhance economic feasibility and facilitate energy consumption. This study, using a bottom-up model and based on the energy system of Fujian Province, China, examines the technical pathways for offshore wind-to-ammonia production. Through extensive scenario calculations, the study analyzes economic factors affecting the development of DOWD. The results show that when ammonia prices range from USD 0.52 to USD 0.6/kg, the deep-sea offshore wind with ammonia production (DOWD+AP) mode demonstrates its advantages, while the price of a single DOWD unit must fall below USD 1.73/W to show superiority. It is recommended that the installation of DOWD in Fujian province should not begin before 2040, with potential ammonia production capacity reaching 24 Mt/year. If ammonia production is unrestricted, the DOWD+AP mode could introduce a new method for flexible regulation, primarily compensating for gaps in solar- and wind-power generation during the summer months.
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spelling doaj-art-d544370d6ab345a1bcc2b24c007ee4342025-08-20T02:53:38ZengMDPI AGEnergies1996-10732024-12-011724630110.3390/en17246301An Economic Analysis of Mid- to Long-Term Prospects for Deep-Sea Offshore Wind-Power-to-Ammonia: A Case Study of Fujian ProvinceXiaoying Zheng0Pei Liu1State Key Lab of Power System Operation and Control, Department of Energy and Power Engineering, Tsinghua University, Beijing 100084, ChinaState Key Lab of Power System Operation and Control, Department of Energy and Power Engineering, Tsinghua University, Beijing 100084, ChinaDeep-sea offshore wind power is crucial for reducing emissions in certain regions’ energy transitions. However, its development has been largely overlooked due to its high investment costs and fluctuation. Ammonia production offers a significant opportunity to enhance economic feasibility and facilitate energy consumption. This study, using a bottom-up model and based on the energy system of Fujian Province, China, examines the technical pathways for offshore wind-to-ammonia production. Through extensive scenario calculations, the study analyzes economic factors affecting the development of DOWD. The results show that when ammonia prices range from USD 0.52 to USD 0.6/kg, the deep-sea offshore wind with ammonia production (DOWD+AP) mode demonstrates its advantages, while the price of a single DOWD unit must fall below USD 1.73/W to show superiority. It is recommended that the installation of DOWD in Fujian province should not begin before 2040, with potential ammonia production capacity reaching 24 Mt/year. If ammonia production is unrestricted, the DOWD+AP mode could introduce a new method for flexible regulation, primarily compensating for gaps in solar- and wind-power generation during the summer months.https://www.mdpi.com/1996-1073/17/24/6301deep-sea offshore wind powereconomic factorsammonia production
spellingShingle Xiaoying Zheng
Pei Liu
An Economic Analysis of Mid- to Long-Term Prospects for Deep-Sea Offshore Wind-Power-to-Ammonia: A Case Study of Fujian Province
Energies
deep-sea offshore wind power
economic factors
ammonia production
title An Economic Analysis of Mid- to Long-Term Prospects for Deep-Sea Offshore Wind-Power-to-Ammonia: A Case Study of Fujian Province
title_full An Economic Analysis of Mid- to Long-Term Prospects for Deep-Sea Offshore Wind-Power-to-Ammonia: A Case Study of Fujian Province
title_fullStr An Economic Analysis of Mid- to Long-Term Prospects for Deep-Sea Offshore Wind-Power-to-Ammonia: A Case Study of Fujian Province
title_full_unstemmed An Economic Analysis of Mid- to Long-Term Prospects for Deep-Sea Offshore Wind-Power-to-Ammonia: A Case Study of Fujian Province
title_short An Economic Analysis of Mid- to Long-Term Prospects for Deep-Sea Offshore Wind-Power-to-Ammonia: A Case Study of Fujian Province
title_sort economic analysis of mid to long term prospects for deep sea offshore wind power to ammonia a case study of fujian province
topic deep-sea offshore wind power
economic factors
ammonia production
url https://www.mdpi.com/1996-1073/17/24/6301
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