In the Eastern Cape of South Africa, a vast stretch of land within Nelson Mandela Bay holds the promise of becoming the world’s most extensive green ammonia facility. The potential impact of such a plant is vast, with ammonia – a compound of nitrogen and hydrogen – having widespread applications from fertilizers to fuels.
Since the early 20th century, the synthetic production of ammonia has revolutionized agriculture. Previously reliant on guano, a limited resource harvested from tropical islands, the advent of synthesized ammonia has enabled agricultural productivity to flourish. A study from the University of Manitoba indicates that approximately half of the world’s food production today wouldn’t be feasible without it.
Ammonia’s uses extend beyond agriculture to the production of explosives for mining, and as a vital ingredient in numerous pharmaceutical and cleaning products. However, current production methods largely dependent on fossil fuels account for 1.8% of global CO2 emissions. The game-changing aspect of “green” ammonia, produced using renewable energy, is its potential to dramatically reduce the carbon footprint of various industries.
Of particular interest is the potential of ammonia as a future fuel source, notably within the shipping sector. According to Colin Loubser, managing director of Hive Energy Africa – the firm behind the Mandela Bay plant – green ammonia could replace heavy fuel oils on ships and diesel, heralding it as the fuel of the future.
Creating green ammonia is an environmentally friendly process involving only water, air, and energy. Electrolysis is used to split water into hydrogen and oxygen, with nitrogen extracted from the air. These two elements are then combined to produce ammonia.
Scheduled to begin operations in 2026, the plant, costing $4.6 billion, will utilize power from a nearby solar farm. Water, a vital ingredient for ammonia production, will be sourced from a local salt factory that desalinates seawater. Hive Energy Africa anticipates the project will create at least 20,000 jobs in the region over its lifetime, providing a much-needed economic boost.
The plant’s establishment comes at a critical time for the Eastern Cape, which has been severely impacted by the Covid-19 pandemic, leading to high unemployment rates. According to Asanda Xawuka of the Coega Development Corporation, this large-scale investment and the potential job creation are seen as significant steps towards recovery.
With the shipping industry accounting for almost 3% of global CO2 emissions in 2018, a shift to green ammonia could be transformative. The International Energy Agency suggests that ammonia needs to satisfy 45% of the global energy demand for shipping by 2050 for net zero scenarios to be achievable. Further applications of green ammonia could include its use in existing coal-fired power plants to drastically reduce their CO2 emissions, or in plants specifically designed to run entirely on ammonia.
