Green ammonia co-firing offers promising solution for decarbonisation

India has taken steps to implement ammonia co-firing. The Japan-India Clean Energy Partnership (CEP) has initiated a pilot project at Adani’s Mundra thermal power plant, aiming for up to 20% green ammonia co-firing in a 300 MW unit. Success at Mundra could lead to broader adoption across other thermal plants in India.

Ammonia co-firing, particularly green ammonia, presents a promising solution.

Originating in Japan, ammonia co-firing involves mixing ammonia with coal to reduce carbon emissions. Initial tests have been successful, with commercial operations projected to begin by 2025.

According to energy analytics and solutions firm Wood Mackenzie, ammonia co-firing can reduce carbon emissions by 10% and create a demand for 200 million tonnes of ammonia, potentially generating a market worth $100 billion by 2050.

However, cost remains a significant challenge. It is estimated that by 2030, the levelized cost of electricity (LCOE) for a coal plant retrofitted with 50% clean ammonia co-firing in Japan will be at least $136 per MWh, rising to $168 per MWh by 2050 for plants running entirely on clean ammonia. These costs are higher than those for renewable alternatives like wind or solar power.

India’s significant thermal capacity and plans to produce green hydrogen or ammonia present an opportunity for ammonia co-firing. A robust policy and regulatory framework can support this transition. Learning from the success of biomass co-firing, where biomass substitutes 20-50% of coal, India can incentivize and regulate ammonia co-firing similarly.

Collaboration between industry and academia is crucial for advancing ammonia co-firing technology. Japan’s IHI and JERA have increased ammonia co-firing rates to 20% at the Hekinan Thermal Power Station, aiming for 50%. India can benefit from similar partnerships to drive innovation.

Developing carbon markets and incentivizing the adoption of co-firing technologies can also promote ammonia co-firing. India’s Carbon Credit Trading Scheme 2023 and the National Steering Committee for the Indian Carbon Market are steps in this direction. Policymakers can establish certification processes for co-firing technologies and ensure eligibility for carbon credits.

India’s exploration of ammonia co-firing is a step towards its Nationally Determined Contribution (NDC) and net zero aspirations. More pilot projects, particularly with state generation companies, are needed to demonstrate the benefits and accelerate widespread adoption. Achieving economies of scale will be key to making green ammonia co-firing cost-effective and transformative for India’s power sector.