Different estimation tools for the Levelized Cost of Ammonia (LCOA) yield a broad range of predicted green ammonia prices, with estimates ranging from $700 to $1800 per ton. These discrepancies raise concerns about the reliability of these tools for policymaking and decision-making. An analysis reveals that the tools rely on a wide variety of economic and technical assumptions. The breakdown shows that renewable energy generation and electrolysis contribute up to 70% of the costs in green ammonia production. Significant improvements are needed in these tools to enhance confidence in LCOA estimates and support the adoption of green ammonia.

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Assessment of Green Ammonia Costing Tools

  • Clive T. Moyo,
  • Paramespri Naidoo

摘要

Different estimation tools for the Levelized Cost of Ammonia (LCOA) yield a broad range of predicted green ammonia prices, with estimates ranging from $700 to $1800 per ton. These discrepancies raise concerns about the reliability of these tools for policymaking and decision-making. An analysis reveals that the tools rely on a wide variety of economic and technical assumptions. The breakdown shows that renewable energy generation and electrolysis contribute up to 70% of the costs in green ammonia production. Significant improvements are needed in these tools to enhance confidence in LCOA estimates and support the adoption of green ammonia.