- FuelPositive’s green ammonia production system is affordable, practical, and about to be available for “real-world” applications in the very near future
- According to the company’s case study, it costs CA$560 to produce one metric tonne of green anhydrous ammonia in Manitoba using its system, compared to the current average Manitoba delivery cost of CA$900 per metric tonne of grey ammonia
- Having commenced development of the first prototype in June of 2021, FuelPositive has begun the building of its second and third prototypes
- It expects to deploy pilot systems throughout 2022
- FuelPositive expects serial manufacturing to begin in 2023 as batch sizes increase
For
FuelPositive (TSX.V: NHHH) (OTCQB: NHHHF), a growth-stage technology company committed to clean energy solutions, 2021 has so far been incredible. Occasioned by the marked progress in the development of its unique modular, scalable system for producing green ammonia (“NH3”), this phenomenal year has steered the company toward the scheduled launch of multiple “
real-world” demonstration pilots to showcase its technology throughout 2022, as well as commercialization of its flagship product.
In a recent update, FuelPositive released an operational costing model and aggressive timeline to be first to market, both critical to its product’s commercialization (
https://ibn.fm/RbXSl). “We are highly efficient, knowledgeable, and experienced in every step we need to take along the way to commercialization. We can move much more quickly than our competitors, and that is one of our great strengths,” commented Ian Clifford, CEO and Board Chairperson of FuelPositive.
To come up with a costing model, FuelPositive used a 1,800-acre case study farm in Manitoba, Canada, a province powered by a carbon-free, sustainable electricity grid. As a result, the company established that the cost of producing green ammonia using its system was CA$560 per metric tonne (based on a hydrogen production efficiency rate of 65%), compared to a current average delivery cost of CA$900 per metric tonne of traditionally produced (“grey”) ammonia – a 37.8% decrease.
The lower cost, according to a recent Recharge article (
https://ibn.fm/ARNZW), is based on the fact that “FuelPositive will combine electrolyzers (which split water molecules into hydrogen and oxygen) with a proprietary reactor that combines nitrogen from the air with H2 using ‘much lower temperatures and much lower pressure’ than Haber-Bosch, resulting in 40% lower costs.”
Notably, Haber-Bosch, the production process behind grey ammonia, is energy intensive – needing pressures above 100 bar and temperatures of between 400-500°C. In addition, because the traditional system is powered by fossil fuels, it contributes roughly 1% of the total global carbon emissions annually. If the CO2 emissions from grey hydrogen production (which also relies on fossil fuels), at a rate of 9-18 tons of CO2 for every ton of H2 generated, are taken into account, the quoted emissions from traditional ammonia production are bound to increase even further. In this regard, FuelPositive’s system will substantially reduce overall production and distribution -related emissions.
FuelPositive’s calculations are based on Manitoba’s current electricity cost of CAD 0.045/kWh, the largest contributor to the overall production cost of its system. Even so, the total figure does not consider any potential cost reductions as a result of carbon credits or the farmers’ capacity to generate sustainable electricity through on-site solar or wind power generation.
The company’s system can produce up to 300 kilograms (500 liters) of green anhydrous ammonia daily, totaling about 100 tonnes per year, an output that is suitable for the 1800-acre model farm. For larger farms, FuelPositive contends that farm owners could simply add sufficient production capacity, aided by the green ammonia production units’ modular, scalable and portable nature.
In addition to having a stable, predictable and highly competitive cost per metric tonne, FuelPositive’s green ammonia production system offers independence from the unpredictable fluctuations of grey anhydrous ammonia today. For instance, in just six months, the delivery cost of grey ammonia to Manitoba farmers doubled from C $600 to CA$1,200, resulting in the CA$900 average cost used in the FuelPositive’s costing calculations.
Moreover, according to Recharge, FuelPositive’s system will offer farmers and other users additional advantages. For instance, the company is evaluating an ion-exchange membrane (“AEM”) electrolyzers, “which do not require the purified H2O normally required for electrolysis – instead, simple tap water can be used. And that electrolyzer could even be modified to use seawater.”
At the same time, green ammonia could provide fuel for the grain-drying process, which is often powered by natural gas or propane – further decreasing CO2 emissions and costs.
FuelPositive, which started building its first full-sized prototype system in June this year, immediately after filing for its provisional patent, is already beginning to build the second and third prototypes, applying a batch-style approach to manufacturing. By the beginning of spring next year, the NHHH team expects to be validating the purity of the green ammonia produced by the first prototype system, as well as its operating expenditure (“OPEX”) figures, at which point pre-orders will begin.
The company anticipates deploying the first three pilot systems throughout 2022. As batch sizes increase, FuelPositive expects serial manufacturing to begin in 2023.
“We are at a point now where we are comfortable with our forecasts. If we have any significant delays or changes, we will communicate that and explain what we are doing about it,” said Nelson Leite, NHHH’s Chief Operating Officer.
For more information, visit the company’s website at
www.FuelPositive.com.
NOTE TO INVESTORS: The latest news and updates relating to NHHHF are available in the company’s newsroom at
https://ibn.fm/NHHHF
