Bear Head Green Ammonia Concept Select Study

Objective

To evaluate the techno-economic feasibility of a Green Hydrogen and Ammonia Production, Storage and Loading Facility, capable of producing approximately two million tonnes of green ammonia annually, leveraging renewable energy sources to achieve a sustainable and low-carbon design.

Project Scope

The Bear Head Energy Green Ammonia Study aimed to assess the optimal design and operations for a green ammonia facility located in Nova Scotia, Canada. Key activities included:

1. Evaluating three development concepts leveraging renewable power sources:
   • Concept 1: Wind power with battery energy storage.
   • Concept 2: Wind power combined with baseload grid power.
   • Concept 3: Wind, solar, and baseload grid power.
2. Utilising the Decision Quality Framework to frame project decisions, including power source selection, ammonia production capacity and energy storage options.
3. Conducting systems modelling to optimise technical and economic
   configurations, including sizing of electrolysers, ammonia synthesis units and energy storage.
4. Assessing risks and opportunities to support concept selection and develop recommendations for the next project phase.

Findings & Recommendations

Findings

• Concept 2 Feasibility: Wind and baseload grid power offered the best
  balance of operational stability and economic viability. It minimised risks
  compared to other concepts while maintaining a competitive Levelised Cost of Ammonia (LCOA).
• Energy Storage Challenges: Batteries required for Concept 1 introduced high CAPEX and logistical challenges due to large capacity needs.
• Solar Marginal Impact: Adding solar power in Concept 3 provided only
  marginal economic benefits while introducing additional complexity and risks.
• Optimal Electrolyser Sizing: Systems modelling determined 800 MW of
  electrolysers and 1,200 mtpd ammonia plant capacity for Concept 2 and
  Concept 3.
• Cost Drivers: Fixed CAPEX for jetty and ammonia storage dictated the need for economies of scale, driving higher production capacities.

Recommendations

1. Advance Concept 2 with a focus on grid power agreements to ensure stable baseload capacity.
2. Conduct a detailed evaluation of ammonia synthesis technologies and
   electrolysers, including supplier-specific technical and economic parameters.
3. Optimise ammonia storage and jetty designs to reduce CAPEX.
4. Confirm solar power tariffs before finalising the inclusion of solar energy in future phases.
5. Assess hydrogen storage requirements and integrate detailed cavern data into the project model.