Ammonia's role in decarbonising heavy industry — challenges and breakthroughs

As industries worldwide race to decarbonise, heavy industry sectors are among the hardest to transition. Many look towards hydrogen as a silver bullet, but in this push toward net zero, ammonia has emerged as a promising alternative to hydrogen, with unique benefits in decarbonising heat-intensive industries like steel, cement, plastics and chemical production.

We believe ammonia will serve as a critical solution for decarbonising heavy industries. But that doesn’t mean there aren’t challenges associated with its adoption. Here we will explore those challenges — and the technological breakthroughs paving the way for ammonia's wider use.

Heavy industry and the carbon challenge

Heavy industries have a particularly difficult task in decarbonising. The energy demands are immense. In industries like steel production, the reliance on coal-fired blast furnaces to achieve these temperatures makes them some of the most carbon-intensive processes on the planet.

For industries dependent on fossil fuels and steam as a heat transfer medium, we’d like to open up a conversation about how alternative fuels, like ammonia, can replace traditional energy sources while maintaining the required energy intensity.

Why ammonia?

Ammonia is increasingly being recognised for its potential to address the energy and emissions challenges in heavy industry. As a hydrogen carrier, ammonia can be stored and transported more easily than hydrogen, thanks to its higher energy density and lower cost of storage and transport. Additionally, ammonia can either be cracked into hydrogen for industrial processes or used directly as a fuel, bypassing the need for the hydrogen separation step.

Here’s why ammonia is a game-changer in industrial decarbonisation:

• Energy-dense and easily stored: Unlike hydrogen, which requires energy-intensive storage and transportation solutions (low temperatures and high pressures), ammonia is easier to store and transport, making it a practical fuel option for industries with distributed energy needs.

• Direct combustion potential: Direct ammonia combustion offers a reduction in costs compared to cracking ammonia back into hydrogen. Eliminating the need for ammonia-to-hydrogen separation would significantly reduce energy inputs and costs for industrial users. It’s more efficient, too.

• Flexibility with renewables: One of ammonia’s key advantages is its ability to ramp up production rapidly, making it highly compatible with intermittent renewable energy sources like solar and wind. This flexibility allows ammonia to become a practical fuel for industries operating in regions where renewable energy sources are abundant but variable.

Breakthroughs in ammonia for heavy industry

The transition from theoretical applications to real-world industrial use of ammonia is already underway, with some significant breakthroughs emerging. As one example, researchers at the Max-Planck-Institut für Eisenforschung are using ammonia directly to reduce iron ores, bypassing the need to crack ammonia into hydrogen and nitrogen.

Let’s look at some of the key technological breakthroughs that are making ammonia viable for heavy industry:

Direct ammonia reduction in steelmaking 

Traditional steelmaking relies heavily on carbon-intensive processes, such as coal-based blast furnaces, to reduce iron ore to iron. Recent breakthroughs in direct ammonia reduction offer a promising alternative. By using ammonia as the reducing agent, iron ores can be directly processed, cutting out the need for hydrogen and significantly reducing the carbon footprint of steel production.

Ammonia-powered furnaces for cement and glass

Ammonia's ability to produce high-temperature heat through combustion makes it suitable for cement and glass manufacturing. These sectors have traditionally relied on fossil fuels, and the integration of ammonia as a clean fuel could transform their decarbonisation strategies.

Ammonia cracking for on-demand hydrogen production

While direct ammonia combustion is advancing, ammonia cracking remains a critical component for industries that need pure hydrogen. Advances in ammonia cracking technologies, such as plasma-assisted cracking, are making the process more energy-efficient, helping to reduce the costs associated with producing hydrogen from ammonia on-site.

Challenges to widespread adoption

While ammonia holds great promise, several challenges must be addressed before it can be widely adopted as a clean fuel:

Safety concerns 

Ammonia is a toxic substance, and handling it safely at scale poses significant challenges. Ensuring that safety protocols are in place and that industries can handle the storage and transportation of ammonia without environmental or health risks is crucial for ongoing adoption.

Infrastructure requirements

Many industries would need to retrofit or rebuild infrastructure to accommodate ammonia as a fuel. Retrofitting existing systems is expensive, and balancing these costs with long-term decarbonisation goals will require careful planning and investment.

Cost of green ammonia production

Currently, green ammonia is about two to three times more expensive to produce than traditional ammonia. While technological advancements are helping reduce production costs, scaling green ammonia production to meet industrial demand will require significant investment in renewable energy and electrolysis technologies.

Scaling ammonia for industrial decarbonisation

Despite the challenges, ammonia is positioned to play a pivotal role along the journey to net zero. As industries increasingly look for solutions that reduce their reliance on fossil fuels while maintaining operational efficiency, ammonia’s versatility, energy density, and compatibility with renewables make it a strong candidate for widespread adoption.

The way we see it, the path forward includes:

• Scaling green ammonia production: The focus needs to be on scaling green ammonia production to make it cost-competitive with fossil fuels. Advances in low-cost electrolysis, such as those being developed by NET portfolio companies, are critical to achieving this goal.

• Building infrastructure: Investment in infrastructure for ammonia storage, transport, and use in industrial processes will be essential. This includes retrofitting existing plants and developing new plants designed around ammonia-based systems.

• Developing safety protocols: Addressing safety concerns around ammonia handling is essential to its successful deployment. Industries will need to adopt stringent safety protocols, and regulatory bodies will need to establish clear guidelines for the safe use of ammonia at scale.

• Innovation in ammonia cracking and combustion: Continued innovation in ammonia cracking technologies and direct ammonia combustion will accelerate its adoption as a clean fuel, especially in sectors like steelmaking, where its potential is already being realised.

Ammonia’s potential to decarbonise heavy industry is vast, but its journey from a niche technology to a mainstream fuel source will depend on continued innovation, cost reductions, and infrastructure development. By overcoming the challenges of safety, cost, and infrastructure, ammonia could become a cornerstone of industrial decarbonisation, helping industries meet their net zero goals without compromising on performance.

At NET, we’re closely following these advancements and are committed to supporting the scaling of ammonia as a key solution for the future of clean industry.