As the world pivots towards a low-carbon economy, the production of low-carbon-intensity ammonia (LCIA) is emerging as a promising solution for reducing greenhouse gas emissions, particularly in the agricultural sector. A recent study published in the journal ‘Gases’ by Haoying Wang from the Department of Business and Technology Management at New Mexico Tech sheds light on the potential of LCIA to transform both the energy and agricultural landscapes.
Ammonia, primarily used as fertilizer, is a critical input in agriculture, with 70-90% of its global supply consumed by this sector. Traditional ammonia production, predominantly through steam methane reforming using natural gas, results in significant carbon emissions. However, the LCIA approach aims to reduce or eliminate these emissions by incorporating carbon capture and storage (CCS) technologies or using renewable energy sources for hydrogen production, as seen in the processes of blue and green ammonia.
Wang emphasizes the dual role of LCIA, stating, “Decarbonizing the supply chain of the food and agricultural sector requires a focus on ammonia production, which is a key input.” This duality is crucial as ammonia does not contain carbon in its final form, making its decarbonization a matter of addressing the emissions generated during its production.
The study forecasts substantial market growth for LCIA, driven by increasing demand for sustainable agricultural inputs, supportive regulatory frameworks, and technological advancements. Emerging economies, in particular, are expected to adopt LCIA products more readily due to their expanding agricultural sectors and heightened environmental concerns. Wang notes, “The current market size of LCIA is modest, but projections indicate significant growth potential in the near term.”
For the energy sector, the commercialization of LCIA presents new opportunities. Regions with abundant renewable energy resources and low-cost natural gas, such as the Permian Basin, could see a strategic shift in ammonia production from overseas to domestic facilities. This shift not only enhances energy security but also revitalizes local economies.
To fully realize the market potential of LCIA, Wang highlights the importance of policy support. “Substantial policy measures are needed to encourage technological advancements that can lower the costs of LCIA-based products,” he explains. Federal policies can catalyze innovation, while local efforts are vital for infrastructure development and workforce growth.
In summary, the research by Haoying Wang indicates that low-carbon-intensity ammonia could play a pivotal role in achieving a sustainable and climate-resilient economy, particularly in agriculture. As the market for LCIA expands, it offers a unique intersection of energy and agricultural interests, paving the way for a greener future.
