Denmark – Topsoe and First Ammonia have signed a capacity reserve agreement in order to jumpstart the worldwide market for green ammonia.
In the future years, Topsoe’s solid oxide electrolyzer cells (SOEC) will be placed in First Ammonia’s environmentally friendly ammonia factories all over the world. The initial purchase under the arrangement will be for 500MW of SOEC units, with potential for expansion to 5GW by the end of the agreement’s term. Recently, the board authorized FID for Topsoe to construct an SOEC manufacturing factory in Herning, Denmark.
A 5GW order for electrolyzers would be the largest of its kind ever placed. Removing 9 million gasoline-powered vehicles from the road would be equivalent to the 13 million metric tons of carbon dioxide emissions prevented by producing 5 million metric tons of green ammonia per year.
Due to begin operations in 2025, these projects will be the first green ammonia production facilities on a commercial scale in the world.
Ammonia to replace hydrocarbons
Compared to other hydrogen-based energy sources, including pure hydrogen, green ammonia has the highest volumetric energy density, making it not only inexpensive but also very convenient to store and transport. Green ammonia can easily replace hydrocarbon-based fuels for a variety of use cases, and the global ammonia infrastructure is already in place, with ammonia-fueled ships on order and ammonia power stations in preparation.