Techno-Economic Analysis of Power to Ammonia Production

¹ School of Science and Engineering, Al Akhawayn University, 53000 Ifrane, Morocco
² National School of Applied Sciences, Sidi Mohamed Ben Abdellah University, 30000 Fez, Morocco

^* Corresponding author: a.bazzi@aui.ma

Abstract

This study introduces a novel methodology for conducting a techno-economic analysis of green ammonia production using mathematical models that meticulously parameterize plant units and technical specifications. The approach involves two key steps: first, identifying and modeling the essential components of green ammonia production, such as electrolyzers, ammonia synthesis units, and plant configurations; second, developing a non-linear optimization model to minimize the levelized cost of ammonia, payback period, internal rate of return, and return on investment. The model also incorporates constraints like maintaining minimum plant unit loads and optimizing electricity costs. By leveraging renewable energy through power purchase agreements, the study ensures a stable energy supply and carbon neutrality across the ammonia value chain. Two scenarios are examined: one with a user-defined electrolyzer configuration and another with an optimized configuration. In the latter, electricity consumption drops to 10 MWh per ton of ammonia produced, saving 60 GWh of energy annually, along with reductions in capital costs by 53% and operating costs by 10% compared to the first scenario.