Fuelling the Future: Why Green Ammonia is the Key to Carbon-Free Energy

Japan: Industries worldwide are finally gaining momentum in their efforts to decarbonize, particularly for the hard-to-abate sectors like transport and power generation. In bridging the gap between scientific understanding and political and societal recognition, and finally commencing the implementation of feasible solutions.

The UN climate conferences have played a major role in driving progress and creating regulatory frameworks for change. Looking ahead to COP28, I have high hopes that it will take us to the next level and lead to tangible and impactful action. There's simply no other choice: to mitigate the effects of climate change, must rapidly decarbonize every aspect of economies at every level.

To transition towards sustainable energy, innovation, investments, planning, resources, and time are required across all industries. However, it is important to recognize that achieving Carbon neutrality everywhere and for everything simultaneously is an impossible task. With a global population of eight billion individuals, energy consumption is necessary for their basic needs such as food, heat, safety, and employment.

Therefore, there is no universal solution to meet the sustainable energy requirements of everyone. The decarbonization process must be customized to the distinct needs and infrastructure of each sector and country, with the usage of energy sources that match their specific criteria and at a pace that is suitable to them.

In the pursuit of a rapid energy transition, it may seem paradoxical, but will need to make concessions regarding Carbon. The electrification of global energy infrastructure will require a considerable amount of time, spanning multiple decades, whether it concerns industrial power generation or household heating, trucks or passenger cars, home cooking, or supplying power to remote areas. To achieve this, numerous power plants will need to depend on Carbon-free fuels such as Hydrogen and Ammonia, and the more sustainably these fuels are sourced, the more favourable the outcome will be.

Ammonia has emerged as a promising Carbon-free fuel due to its sustainable production, well-understood properties, and easier-to-manage transportation and storage compared to other methods like liquid Hydrogen or MCH. Additionally, it can even be retrofitted into some of the current energy infrastructure to serve as an energy source.

The upcoming COP28 event is poised to prioritize the identification of the optimal blend of decarbonized energy sources. Encouragingly, progress is already underway in significant discussions such as this year's G7 summit in Hiroshima, Japan. Green Ammonia, which serves as a carrier of energy, is garnering the recognition it merits. Not only does Ammonia represent an outstanding vehicle for Hydrogen transportation, but it can also function as a Carbon-neutral energy source on its own. As a catalyst for the energy transition, green Ammonia will undoubtedly play a critical role.

The G7 energy ministers' statement acknowledged the significance of renewable Hydrogen and Ammonia as potent means of reducing emissions to facilitate decarbonization in various industries and sectors, especially in those that are difficult to decarbonize, such as transportation and industrial sectors.

Renewable energy sources such as solar, wind, and water will not be sufficient to fulfil the world's energy requirements for several decades. The international community has recently reiterated its dedication towards achieving a power sector that is fully or mostly decarbonized by 2035. This means that there is a necessity for a thermal power generation infrastructure that adheres to the 1.5°C pathway. Green Ammonia has been recognized by G7 ministers as having a significant role in achieving this objective. The progress made at the G7 must now be carried forward to COP28, so that both industry and investors can confidently make the necessary energy investment decisions.

Japan is setting a remarkable precedent by prioritizing green Ammonia as a significant player in its ambitious "GX" plan for the country's green energy revolution. Likewise, the European Commission acknowledges the potential of green Ammonia to contribute to the EU's energy transition, and several European nations are already making plans to incorporate it into their energy mix.

The energy transition is a process that cannot be rushed, requiring significant investments and infrastructure development to achieve a balanced shift towards a Carbon-free energy sector. The G7 has acknowledged the importance of establishing a transparent global market and reliable supply chains for Hydrogen and Ammonia to aid in the decarbonisation of the world. To achieve this, it is essential to adhere to international standards and certification schemes while maintaining environmental and social standards.

To combat the effects of climate change, it is imperative that we achieve a net-zero world by no later than 2050. This requires an urgent and sustainable shift towards zero Carbon fuels. Investment decisions must be made without any further delay and standards should be agreed upon at the earliest. For this purpose, green Ammonia emerges as an ideal energy source that can complement renewable energies, thereby unlocking the potential of energy transition for sectors and use cases which cannot be addressed by wind, solar or hydropower alone.