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The Future of Hydrogen Chapter 4: Present and potential industrial uses of hydrogen is 2.3 tCO2/t, with average intensities for major regions in the range of 0.8–3.1 tCO2/t. As for ammonia, production based purely on coal is the most emissions-intensive pathway. The production of HVCs is responsible for a further 250 MtCO2/yr of CO2 emissions. However, the key mitigation options currently under development (including the direct application of CCUS to existing process units, dry methane reforming and steam cracker electrification) do not involve additional dedicated hydrogen production. HVCs could also be produced from methanol, but this would similarly not involve additional hydrogen production beyond that required for the methanol. The focus in this section is therefore on ammonia and methanol. Alternative process technologies and feedstocks could meet growing demand for large quantities of dedicated hydrogen feedstock in the chemical sector for ammonia and methanol while reducing CO2 emissions (Box 9). The three main cleaner process technology options are: using CCUS to reduce fossil fuel-related emissions (assuming sufficient CO2 transport and storage infrastructure is in place); using electrolysis-derived hydrogen (assuming a renewable electricity supply); and using biomass feedstocks (assuming a sustainable supply of bioenergy). Today all of these options are more costly than using fossil fuels without CCUS. Box 9. Existing and planned low-carbon ammonia and methanol production Three facilities in the United States were capturing CO2 from the production of hydrogen for ammonia-based fertilisers in 2018. In total, these operational plants have the capacity to produce over 150 ktH2/yr of low-carbon hydrogen and capture nearly 2 MtCO2/yr. The captured CO2 is currently fed into pipelines and used for EOR (IEA, 2016). By 2022 four similar projects are set to be commissioned. Two of these are in the United States, one is in Canada and one is in China, and all but one plan to sell the CO2 for EOR. EOR is likely to offer declining opportunities for use of CO2 in the long term (as oil production declines), and is not an option in all geographies. A further, larger project in south Western Australia is planned for operation by 2025, with a portion of the captured 2.5 MtCO2/yr coming from hydrogen production for ammonia fertiliser and destined for geological storage without EOR. Since late 2018 Yara, the world’s largest ammonia producer, has been using by-product hydrogen from a steam cracker to reduce its consumption of natural gas (and a reported 10 ktCO2/yr of emissions) in an existing ammonia plant in the Netherlands (Brown, 2019). In collaboration with the energy company ENGIE, Yara is now assessing the feasibility of integrating electrolysis-based hydrogen into its operations in Australia (ENGIE, 2019). Feasibility studies are also being undertaken for electrolytic hydrogen projects in Chile (German Government, 2018) and Morocco (Fraunhofer IMWS, 2018). Work is also being undertaken in Iowa in the United States to produce ammonia using hydrogen from solar-powered electrolysis for use as a fertiliser and a fuel (Schmuecker Pinehurst Farm LLC, 2017), and there are similar- scale research and pilot facilities in Oxford in the United Kingdom and Minnesota in the United States. VärmlandsMetanol AB and ThyssenKrupp Industrial Solutions plan to commission the world’s first commercial-scale biomass gasification demonstration plant in Sweden to produce methanol PAGE | 103 IEA. All rights reserved.PDF Image | The Future of Hydrogen 2019
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