Green Ammonia Feasibility Study & PreFEED

Objective

EVREC engaged io consulting to conduct a feasibility study for a green ammonia project in Newfoundland, and ensuing PreFEED. The study aimed to determine the least-risk, highest-economic-return and most financeable design for a phased green ammonia facility, integrating Variable Renewable Energy (VRE), hydrogen production and energy storage. The key focus areas included optimising power supply, energy storage and hydrogen storage to ensure system stability while minimising costs.

The PreFEED phase further defined the green ammonia facility and included cooling medium study, ammonia licensor assessment, support with investor due diligence and development of PreFEED deliverables in support of Class 4 cost estimate and FEED Basis of Design (BOD).

Project Scope

The study assessed multiple configurations for power generation, hydrogen storage, and ammonia synthesis to determine the optimal system design. Key aspects included:

1. Renewable Energy Supply – Evaluating a 3,000 MW wind array with solar PV integration to optimise power reliability.
2. Energy Storage Solutions – Assessing battery storage and hydrogen-based power generation to stabilise ammonia production.
3. Hydrogen Storage Options – Comparing aboveground and underground hydrogen storage technologies to balance cost and operational flexibility.
4. System Modelling & Cost Optimisation – Analysing Levelised Cost of Ammonia (LCOA) for different configurations.

Findings & Recommendations

Findings

• Power Supply Strategy: Wind power had a 45% capacity factor, varying seasonally from 55% in winter to 30% in summer. Solar had a lower capacity factor (15% on average) but helped reduce battery storage requirements.
• Energy Storage Selection: A 1,300 MWh Battery Energy Storage System (BESS) was required to stabilise power supply and minimise disruptions in ammonia production.
• Hydrogen Storage Strategy: Underground hydrogen storage in hard rock caverns provided the lowest Total Installed Cost (TIC) per kilogram of stored hydrogen. Aboveground hydrogen storage, while modular and scalable, had significantly higher capital costs.
• Ammonia Production Constraints & Optimisation: Traditional Haber-Bosch ammonia synthesis required a continuous power supply and had limited flexibility for ramping. A turndown rate of 10-20% was achievable, but large power variations could lead to frequent plant trips.
• Levelised Cost of Ammonia (LCOA) Analysis: The lowest LCOA was achieved using underground hydrogen storage and optimised power configurations. Aboveground storage options resulted in a higher LCOA due to increased capital costs.
• Grid Connection as a Cost Reduction Strategy: A 50MW grid connection provided significant savings by reducing battery storage needs, leading to significant CAPEX reductions.

Recommendations

1. Power Supply Strategy: Integrate 150MW solar PV to smooth fluctuations in wind generation and reduce reliance on large-scale battery storage.
2. Energy Storage Selection: Optimise battery sizing and explore alternative storage options such as Liquid Air Energy Storage (LAES) and flow batteries to improve cost-effectiveness.
3. Hydrogen Storage Strategy: Prioritise underground storage where feasible while maintaining a limited above-ground buffer storage system for operational flexibility.
4. Ammonia Production Constraints & Optimisation: Implement predictive control strategies to modulate ammonia production based on real-time power availability and weather forecasting.
5. Levelised Cost of Ammonia (LCOA) Analysis: Select underground hydrogen storage and battery-integrated renewable power as the preferred configuration for further project development.
6. Grid Connection as a Cost Reduction Strategy: Secure a grid connection agreement to lower project costs while maintaining energy independence.