The dual role of low-carbon ammonia in climate-smart farming and energy transition

Lin, Ning; Wang, Haoying; Moscardelli, Lorena; Shuster, Mark

doi:10.1016/j.jclepro.2024.143188

Journal of Cleaner Production

2024

DOI: 10.1016/j.jclepro.2024.143188

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The dual role of low-carbon ammonia in climate-smart farming and energy transition

Ning Lin,

Haoying Wang,

Lorena Moscardelli

et al.

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2024

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Cited by 3 publications

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Greening the Corn Belt: Low-carbon-intensity ammonia’s role in the future of sustainable corn production

Arzumanyan,

Lin,

Wang

2024

Journal of Renewable and Sustainable Energy

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Ammonia production is a significant source of carbon emissions globally, particularly in the agricultural sector, where it is extensively used as a fertilizer. This research suggests a potential avenue to reduce the carbon footprint of corn production for biofuels in the US Corn Belt. Conventional methods of producing nitrogenous fertilizers derived from ammonia are responsible for the highest CO2 emissions in the life cycle of corn production. We estimate that the total CO2 emissions can be reduced from 3.09 kg CO2 to 2.07 kg CO2 per bushel of corn (33% reduction) when conventional ammonia is replaced with green ammonia. If conventional ammonia is replaced with blue ammonia with carbon capture and storage, the total CO2 emissions can be reduced from 3.09 kg CO2 to 2.27 kg CO2 per bushel of corn (26% reduction). Despite these environmental benefits, our economic analysis reveals that even with policy incentives such as the 45Q and 45V tax credits, low-carbon-intensity ammonia is not yet cost-competitive with conventional ammonia. Renewable (green) ammonia, for instance, remains significantly more expensive at $532 (2024 US Dollar) per metric ton with 45V incentives compared to conventional ammonia at $249 per metric ton. Blue ammonia, even with the 45Q credit, costs $289 per metric ton—still higher than conventional ammonia. However, when a tiered carbon tax of $85 per ton of CO2 is applied to conventional ammonia, raising its cost to $326 per metric ton, blue ammonia becomes cost-competitive, but green ammonia still lags behind. This highlights the need for carbon pricing policies to enable the shift toward lower-carbon ammonia production, as tax credits alone are insufficient to close the cost gap.

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Greening the Corn Belt: Low-carbon-intensity ammonia’s role in the future of sustainable corn production

Arzumanyan,

Lin,

Wang

2024

Journal of Renewable and Sustainable Energy

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The effect of agricultural policy on sustainability and environmental protection: omnibus law case study

Marpaung,

Nitami,

Siregar

et al. 2024

IOP Conf. Ser.: Earth Environ. Sci.

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This study assesses the effects of increased domestic investment in the Agriculture, Hunting, Forestry, and Fisheries sectors on environmental sustainability in Indonesia, particularly after the Omnibus Law was enacted in 2020. Using a descriptive quantitative approach and time series data from the Central Bureau of Statistics, relevant Ministries, legal documents, and previous research, the study examines the relationship between domestic investment and various environmental indicators. These indicators include the area of forest and aquatic conservation, total plantation land, greenhouse gas emission intensity, and energy intensity in agriculture. The analysis reveals that despite a significant rise in investment, there has been no notable impact on environmental sustainability. Forest and aquatic conservation areas have remained stable, and while plantation land has increased, it is unevenly distributed. Additionally, greenhouse gas emissions and energy intensity have shown stability with minor reductions, indicating that sustainable practices have not been effectively implemented. The findings underscore the need for more robust policies to ensure that increased investment also fosters environmental protection and long-term sustainability.

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The Market for Low-Carbon-Intensity Ammonia

Wang,

Lin,

Arzumanyan

2024

Gases

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As carbon capture and storage (CCS) technologies mature, the concept of a low-carbon or net-zero-carbon economy becomes more and more feasible. While many chemical and energy products do not contain carbon in their compounds, the upstream production process does. An added CCS module allows the removal of carbon emissions from the production process, which expands the value chain. This paper focuses on one of such commodities—low-carbon-intensity ammonia (LCIA). Even though ammonia is carbon-free in its final product, it is commonly made from natural gas, and the production process could generate significant carbon emissions. The idea of LCIA is to reduce the carbon footprint of the ammonia production process (e.g., blue ammonia) or eliminate carbon from the production process (e.g., green ammonia via electrolysis) so that the entire supply chain is decarbonized. The goal of this paper is two-fold. We first explore the US domestic market and the international market for LCIA. We then discuss relevant federal and local policies that could help grow markets for LCIA. The agricultural sector will be the center of the discussion, which consumes an estimated 70–90% of the global ammonia supply as fertilizers. The paper also examines other potential uses of LCIA, such as alternative fuels for decarbonizing agricultural machinery and transportation sectors. Finally, we argue that developing a comprehensive LCIA value chain, supported by dedicated policy measures and broad stakeholder engagement, is critical for materializing the potential of LCIA in contributing to a climate-resilient and sustainable economy.

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The dual role of low-carbon ammonia in climate-smart farming and energy transition

Cited by 3 publications

References 35 publications

Greening the Corn Belt: Low-carbon-intensity ammonia’s role in the future of sustainable corn production

Greening the Corn Belt: Low-carbon-intensity ammonia’s role in the future of sustainable corn production

The effect of agricultural policy on sustainability and environmental protection: omnibus law case study

The Market for Low-Carbon-Intensity Ammonia

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