1. Home
  2. / Corporate News
  3. / CELA Study Highlights Competitive Potential of Green Ammonia Production with Renewable Hydrogen in Brazil
Reading time 3 min of reading Comments 0 comments

CELA Study Highlights Competitive Potential of Green Ammonia Production with Renewable Hydrogen in Brazil

Written by Corporativo
Published on 12/08/2024 at 15:52
Seja o primeiro a reagir!
Reagir ao artigo

Green Ammonia Production In Brazil With Hydrogen From Renewable Sources Is Competitive, With Local Costs Between 539 And 1,103 US$/Ton, According To CELA Study.

The production of green ammonia in Brazil, using hydrogen from renewable sources, proves to be competitive and promising. A recent study by CELA reveals that the local production cost is between 539 and 1,103 US$/ton, highlighting the country’s potential to become a leader in this segment. In addition to providing economic advantages, this approach significantly contributes to the reduction of greenhouse gas emissions, promoting more sustainable agriculture.

Furthermore, since green ammonia production is aligned with environmentally responsible practices, the use of green hydrogen emerges as a viable and competitive alternative compared to traditional fossil fuels. Experts emphasize that adopting this technology can open new opportunities for food security and decarbonization of Brazilian agriculture. The variable cost and environmental benefits position Brazil in a privileged position in the global clean energy scenario.

The Competitiveness Of Green Ammonia Production In Brazil

The production cost of green ammonia in Brazil, derived from hydrogen obtained from renewable sources such as solar and wind energy, presents a notable level of competitiveness compared to conventional methods that utilize fossil fuels. According to the analysis by CELA (Clean Energy Latin America), a consulting firm specializing in financial advisory and strategic consulting for companies in the renewable energy sector in Latin America, the levelized cost of hydrogen (LCOH) and green ammonia (LCOA) indicates that local production has a significant competitive advantage.

LCOA Index Brazil From CELA: Efficiency And Cost

Considered essential for the decarbonization of agricultural production and other economic activities in Brazil, the production of green ammonia has a cost listed by the LCOA Index Brazil from CELA between 539 and 1.03 dollars per ton. In contrast, the production of ammonia based on gray hydrogen, which is generated from fossil fuels, ranges between 361 and 1,300 dollars per ton. The CELA index, updated annually, was developed using proprietary modeling and experience across various projects involving H2V plants in Brazil.

Details Of The Costs Of Producing Green Hydrogen

The production of green hydrogen in Brazil takes into account the country’s unique characteristics in regulatory, legal, fiscal aspects, and renewable resources such as solar, wind, and hydroelectric energy, which are used in electrolysis to separate hydrogen from oxygen in water. Logistical issues and cross-referencing investment data in plants, operation, and capital cost are also considered. The tool indicates that it is currently possible to produce green hydrogen in Brazil at a cost between 2.83 and 6.16 dollars per kilogram in strategic locations.

New Developments In The CELA Index For 2024

In the 2024 update, in addition to the unprecedented LCOA index, CELA has prepared a comprehensive report detailing decision-making in green hydrogen projects under 16 different scenarios generated from 1,280 simulations. Companies interested in obtaining the report can contact CELA directly.

Benefits Of Green Ammonia Production According To Experts

Marília Rabassa, Partner and Head of Consulting at CELA, states that the index will be vital in decision-making for investment in H2V plants in Brazil. It will provide more security regarding economic viability and the attractiveness of projects. The executive emphasizes the need for investors to deeply understand the impacts of their decisions on the equipment, the energy source, the consumer market, and the regulatory and technical conditions that influence the financial viability of green hydrogen projects.

The Role Of The Index In Project Optimization And Public Policies

Rabassa also highlights that the index could serve to enhance the technical and financial optimizations of projects, as well as represent a clear indication to Brazilian authorities regarding the importance of stimulating demand for green hydrogen and green ammonia. These actions are essential for Brazil’s progress toward a more sustainable and decarbonized economy. A free summarized access to the CELA Brazil LCOH and LCOA Index can be found on the organization’s website.

Access for free: https://cela.com.br/estudos/lcox-custo-nivelado-de-hidrogenio-verde-lcoh-e-de-amonia-verde-lcoa/

Source: Press CELA

Inscreva-se
Notificar de
guest
0 Comentários
Mais recente
Mais antigos Mais votado
Feedbacks
Visualizar todos comentários
Corporativo

CPG Informes Corporativos é destinado a notícias sobre eventos, projetos e comunicados de empresas do Brasil e do mundo!

Share in apps
0
Adoraríamos sua opnião sobre esse assunto, comente!x