Decarbonisation Technology May 2026 Issue

Feed treatment

Primary reformer

Secondary reformer

HT & LT shift

CO removal

To syngas compression

Methanation

NG feed

Dryers

HP purge

NH chillers

Syngas compressor

Make - up syngas

Ammonia

Ammonia compressor

To HP steam drum

Converter

BFW

Figure 1a Case 1: Existing ammonia plant configuration front end and 1b Case 1: Existing ammonia plant configuration synloop

Case 4: Green hydrogen integration to expand capacity in a small US plant A smaller US-based ammonia plant evaluated the injection of green hydrogen to increase production by approximately 20% while reducing carbon intensity. The plant had already installed a new converter rated at 120% capacity, but was constrained by limited syngas supply from the front end. Key drivers included the high cost of trucked-in ammonia (~20% of total output) and the availability of competitively priced green hydrogen. Multiple nitrogen sourcing options were assessed, with OTF supply emerging as the most cost- effective solution. Divergent policy frameworks: Europe vs US The case studies presented reflect fundamentally different regulatory environments shaping project investment decisions. Europe’s approach integrates financial support with emissions cost structures –the EU ETS assigns direct costs to carbon emissions while CBAM establishes border adjustments affecting imported products. This dual framework creates economic drivers influencing capital allocation toward lower-carbon production pathways. In contrast, the US policy landscape emphasises incentive-based mechanisms, such as IRA tax credits, without parallel mechanisms to account for emissions costs. This approach creates conditions where projects may be deferred during periods of policy uncertainty, as observed in several cases

examined. The absence of direct emissions costs means existing production methods face no incremental financial obligations based on carbon intensity, affecting the comparative economics of capital-intensive facility modifications relative to continuing current operations,even where incentives are available. These differing policy architectures influence both the pace and scale of decarbonisation investments, with implications for competitive positioning as global ammonia markets evolve toward lower-carbon-intensity products. Case 1: Drivers for full-scale conversion at the European location Europe’s clean ammonia transition is driven by tightening carbon policy and expanding hydrogen infrastructure. The inclusion of hydrogen under the EU Emissions Trading System (EU ETS) – with carbon prices at €80- €90/tCO₂ – and the Carbon Border Adjustment Mechanism (CBAM) are raising the cost of unabated production and imports. While initiatives such as REPowerEU and the EHB are advancing the deployment of electrolysers and pipeline connectivity, high gas prices and funding delays have slowed progress. Still, a phased conversion strategy – anchored in robust conceptual and process design – can minimise facility modifications and reduce capital intensity. For producers, this approach provides a pragmatic path to lower carbon exposure, aligns with regulatory trends, and enables access to emerging low-carbon markets.