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Ammonia Production as Alternative Energy for the Baltic Sea Region

Author

Listed:
  • Gunnar Prause

    (School of Business and Governance, Tallinn University of Technology, Akadeemia tee 3, 12618 Tallinn, Estonia
    Wismar Business School, Wismar University, Philipp-Müller-Str. 14, 23966 Wismar, Germany)

  • Eunice O. Olaniyi

    (Department of Geography and Geology, University of Turku, 20014 Turku, Finland)

  • Wolfgang Gerstlberger

    (School of Business and Governance, Tallinn University of Technology, Akadeemia tee 3, 12618 Tallinn, Estonia)

Abstract

One of the consequences of the conflict in Ukraine relates to the growing shortfall in global ammonia production. There are additional negative global impacts on the availability of fertilizers and prices of ammonia (NH 3 ). The shortage in ammonia production does not only influence the agroindustry but also the global shipping industry, as ammonia is positioned as a promising zero-carbon fuel and as a storage and transport medium for hydrogen. There are plans underway to start ammonia production in Estonia to minimize the consequences of the import stop of Russian ammonia in the context of the Ukrainian crisis. This study investigated the Baltic Sea Region (BSR) ammonia market and analyzed the economic implications of building an ammonia plant within the BSR. Using fuzzy real options models as the conceptual framework, together with secondary data analysis, case studies and expert interviews, the authors chart possible courses for the construction of ammonia production facilities within the region. Based on the case of the NH 3 production plant, as well as the underlying distribution system, the study provides new economic perspectives for lower carbonization for the shipping industry, an attempt at creating a model for other European regions toward climate change mitigation.

Suggested Citation

  • Gunnar Prause & Eunice O. Olaniyi & Wolfgang Gerstlberger, 2023. "Ammonia Production as Alternative Energy for the Baltic Sea Region," Energies, MDPI, vol. 16(4), pages 1-17, February.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:4:p:1831-:d:1066181
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    References listed on IDEAS

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    1. R. E. Bellman & L. A. Zadeh, 1970. "Decision-Making in a Fuzzy Environment," Management Science, INFORMS, vol. 17(4), pages 141-164, December.
    2. Xing, Hui & Spence, Stephen & Chen, Hua, 2020. "A comprehensive review on countermeasures for CO2 emissions from ships," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    3. Gunnar Prause & Gunnar Prause & Tarmo Tuisk & Eunice Omolola Olaniyi, 2019. "Between sustainability, social cohesion and security. Regional development in North-Eastern Estonia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1235-1254, March.
    4. Eunice O. Olaniyi & Gunnar Prause & Vera Gerasimova & Tommi Inkinen, 2022. "Clean Cruise Shipping: Experience from the BSR," Sustainability, MDPI, vol. 14(9), pages 1-17, April.
    5. Harilaos N. Psaraftis, 2019. "Decarbonization of maritime transport: to be or not to be?," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(3), pages 353-371, September.
    6. Edward H. Bowman & Gary T. Moskowitz, 2001. "Real Options Analysis and Strategic Decision Making," Organization Science, INFORMS, vol. 12(6), pages 772-777, December.
    7. Felix Prause & Gunnar Prause & Robert Philipp, 2022. "Inventory Routing for Ammonia Supply in German Ports," Energies, MDPI, vol. 15(17), pages 1-22, September.
    8. Sina Atari & Yassine Bakkar & Eunice Omolola Olaniyi & Gunnar Prause, 2019. "Real options analysis of abatement investments for sulphur emission control compliance," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1062-1087, March.
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    Cited by:

    1. Prause, Gunnar (Ed.), 2024. "The South Caucasian transport corridor: A new Eurasian transport option," Wismar Discussion Papers 03/2024, Hochschule Wismar, Wismar Business School.

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