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From cracking to combustion: how ammonia can bridge the gap to a green hydrogen economy

The global push for net-zero emissions is advancing rapidly, with green hydrogen positioned as a powerful solution for decarbonising industries. But producing and distributing hydrogen is complex and resource-intensive. 



Enter ammonia: a versatile hydrogen carrier and an alternative fuel that is easier to store, transport, and deploy for industrial uses.


As heavy industries like steel, cement, and chemicals look for ways to reduce emissions, ammonia is an energy-dense fuel alternative that supports high-temperature heat demands. More than a stopgap, ammonia is emerging as a bridge technology in the green hydrogen economy — ready to fill the gaps where hydrogen infrastructure is still nascent and where electrification alone is insufficient.


In this article, we’ll explore:


  • The processes and challenges involved in using ammonia for heat and hydrogen

  • How ammonia fits into the broader hydrogen economy

  • Policy and market drivers accelerating its adoption in heavy industry


Ammonia isn’t a future fuel. It’s a viable path to decarbonisation for heat-intensive industries today. By integrating ammonia into their energy strategies, heavy industry can bridge the divide between current fossil-fuel reliance and a green hydrogen future.


Process and challenges: ammonia in industrial decarbonisation

For high-emission sectors like steel, cement, and chemical manufacturing, achieving net zero means overcoming unique technical and logistical barriers. These industries depend on intense, stable heat levels — often above 800°C — making electrification challenging and often impractical. Ammonia provides a feasible alternative, enabling these industries to lower emissions without drastically overhauling their infrastructure or relying solely on grid-based power.


There are two main approaches to ammonia use:


  1. Cracking for hydrogen release: Ammonia can be “cracked” into nitrogen and hydrogen, allowing industries to access hydrogen on-site when needed. This flexibility reduces the infrastructure requirements that typically come with hydrogen transport and storage.

  2. Direct combustion for industrial heat: Ammonia combustion is emerging as a viable process for direct heat applications. In heavy industry, ammonia combustion could replace fossil fuels to power high-temperature furnaces, addressing the energy intensity that renewable electricity often cannot meet alone.


However, integrating ammonia broadly isn’t without its challenges. Ammonia production, storage, and combustion all require careful handling and adaptation of existing systems. Infrastructure must be modified to accommodate ammonia’s unique properties, from storage tanks to combustion equipment, while ensuring safety measures are in place to manage ammonia’s toxicity.


Despite these hurdles, recent technological advancements are making it easier to incorporate ammonia into industrial processes, positioning it as a ready-to-deploy solution in the race to decarbonise.


How ammonia fits into the hydrogen economy

Ammonia plays a unique role in the hydrogen economy, not only as a fuel but also as a highly efficient hydrogen carrier. In many ways, ammonia’s potential to bridge the gap to a hydrogen-powered future stems from its versatility. Unlike pure hydrogen, which requires complex infrastructure for safe transport and storage, ammonia can be stored and moved at relatively lower pressures and ambient temperatures, making it a cost-effective hydrogen vector.


Why ammonia as a hydrogen carrier?

  1. Efficient storage and transportHydrogen is notoriously difficult and expensive to store and transport due to its low energy density and need for cryogenic or high-pressure storage. Ammonia, by contrast, is a stable molecule that can be transported in liquid form, reducing the costs associated with hydrogen distribution. Once delivered, ammonia can be “cracked” back into hydrogen as needed, allowing industries to access hydrogen at the point of use.

  2. Compatibility with intermittent renewablesAmmonia’s manufacturing plants have the ability to ramp up or down with fluctuating renewable energy sources, such as solar and wind, making it an ideal energy carrier. Facilities generating green ammonia can produce it in line with renewable availability, allowing for the conversion of excess electricity into a storable form.

  3. Integration into existing hydrogen ecosystemsAs hydrogen infrastructure gradually develops, ammonia provides a parallel pathway for decarbonisation, providing industries with a flexible and cost-effective way to integrate hydrogen into their processes. For regions where hydrogen infrastructure remains underdeveloped, ammonia can serve as an immediate alternative, allowing industries to decarbonise faster.


As the hydrogen economy matures, ammonia’s dual role as a fuel and hydrogen carrier allows it to support diverse applications across the energy landscape. By facilitating hydrogen use in regions and sectors where infrastructure is limited, ammonia is poised to accelerate the path toward a green hydrogen economy.


Policy and market drivers behind ammonia’s growing adoption

The momentum behind ammonia as a solution for decarbonising heavy industry is accelerating, driven by a combination of policy initiatives, regulatory frameworks, and market demand. As governments worldwide set ambitious targets for emissions reductions, we believe ammonia could be a key piece of the puzzle in meeting industrial decarbonisation goals.


1. National and global climate policies

Countries with net zero targets are recognising ammonia’s role in hard-to-abate sectors. Governments in Europe, Asia, and North America are introducing incentives and subsidies to encourage the use of green ammonia. For example, producers of green ammonia will be eligible for free allowances under the EU’s carbon trading mechanism. Similarly, Japan’s roadmap for carbon neutrality heavily focuses on fuel ammonia, driving investment in both production and infrastructure.


2. Demand for hydrogen carriers

There’s a growing need for efficient hydrogen carriers. Ammonia’s ability to act as a bridge fuel in the hydrogen economy makes it attractive for industries and investors alike, as it allows companies to achieve near-term emissions reductions without waiting for costly infrastructure to catch up.


3. Decarbonisation mandates in heavy industry

Sectors like steel, cement, and chemical production are beginning to face emissions regulations. One example is the EU Carbon Border Adjustment Mechanism (CBAM), which requires importers of CBAM goods, including aluminum, steel, iron, fertilizers, electrical energy, hydrogen and cement, to report on the embedded emissions of their goods and pay a carbon price. Green ammonia poses one solution to reducing supply chain emissions, and could be a reliable pathway for companies looking to achieve regulatory compliance and avoid penalties.


4. Investment in green technology innovation

The global investment community is pushing for climate solutions, and ammonia is benefiting from this influx of capital. Venture capital and government-backed green funds are supporting startups and established companies innovating in ammonia production, storage, and combustion. These investments are accelerating advancements in ammonia technologies, driving down costs and making ammonia more accessible for industrial applications.


With further alignment of policy, market demands, and investment incentives, ammonia could be positioned as an integral component of the energy transition landscape. With growing support, we believe ammonia could play a vital role in industrial decarbonisation and the broader transition to a hydrogen economy.


Looking forward: ammonia’s role in a sustainable future

As the world races to decarbonise, ammonia stands out as a practical and powerful solution for reducing emissions in sectors that face unique challenges with electrification alone. Its flexibility allows it to fill critical gaps in the energy transition, particularly for industries that require sustained, high-temperature heat. 


The path forward for ammonia involves addressing several key factors:


  • Scaling production: Increased investment in green ammonia production is crucial to making it cost-competitive with fossil fuels or ammonia-derived from fossil fuels. As more companies and governments invest in sustainable ammonia production, economies of scale will drive down costs, making ammonia more accessible to heavy industry.

  • Strengthening infrastructure: Developing the infrastructure for safe ammonia storage, transport, and industrial application is essential. This includes building and retrofitting plants to accommodate ammonia-based systems, enabling ammonia’s wider adoption as a green energy solution.

  • Enhancing safety standards: As ammonia use grows, industries and regulatory bodies will need to implement stringent safety protocols. Establishing clear guidelines and standards will be critical to mitigating risks and ensuring ammonia can be used safely at scale.


We can harness ammonia’s potential to transform heavy industry and accelerate the journey to a sustainable future. At NET, we are committed to supporting ammonia’s development as a key solution, working with industry leaders and innovators to drive forward this exciting frontier in green fuel technology.

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