INDIA

India stands as one of the world’s leading producers of ammonia, contributing approximately 8% to global production. The majority of this ammonia is utilized domestically to produce urea, which serves as a critical component in fertilizers.

Despite this substantial domestic production, India also relies on imports to meet its ammonia needs. In 2021, India imported around 2.4 million tonnes of ammonia, positioning itself as the second-largest ammonia importer globally. The bulk of these imports are sourced from the Middle East, highlighting a notable opportunity for leveraging India’s renewable energy resources.

Renewable Energy Potential in India

India possesses significant advantages for renewable energy production, particularly solar energy. The country benefits from high solar irradiance, making it an ideal location for solar photovoltaic (PV) installations. According to the International Renewable Energy Agency (IRENA), India had the lowest installed solar PV cost globally at $590 per kW in 2021. Conversely, the country has relatively low wind energy potential.

To evaluate the feasibility of renewable ammonia production, Richard Nayak-Luke and colleagues conducted a study modeling the levelized cost of ammonia (LCOA) in India. This analysis was based on a 30-year dataset of solar and wind data (1990-2019) from the ERA5 database, with a resolution of one hour. The study assessed year-to-year variations in solar and wind profiles to provide a comprehensive analysis.

Flexibility and Technological Considerations

A critical factor for reducing the cost of renewable ammonia production is the flexibility of the ammonia plant. Technology licensors indicate that a minimum load factor ranging from 5% to 40% of the plant’s nominal capacity is achievable. Given the daily variability of solar PV, the ammonia plant must be capable of adjusting its operations to match this fluctuation. The study by Nayak-Luke and colleagues suggests that it is more advantageous to oversize the solar PV capacity and curtail a portion of the generated electricity, rather than relying on a large hydrogen storage buffer.

Integration with Renewable Energy Grid

India’s highly integrated electricity grid facilitates the connection of variable renewable energy sources, such as solar PV and wind. This grid integration allows for the use of energy storage solutions, such as batteries and pumped hydro storage, to manage fluctuations in renewable energy availability. The Indian government plans to expand its pumped hydro storage capacity to 18 GW by 2032.

An additional strategy for ensuring a stable supply of renewable energy involves the use of ammonia as a fuel in gas peaker plants. During peak solar PV hours, electricity can be used to produce hydrogen through electrolysis, which is then converted into ammonia. At night, a portion of this ammonia can be converted back into electricity to maintain operations at the nitrogen purification and ammonia production facilities. This approach not only provides backup power but also supports peak demand in Indian population centers, enhancing the overall reliability and sustainability of the energy system.