IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i24p6301-d1543268.html
   My bibliography  Save this article

An Economic Analysis of Mid- to Long-Term Prospects for Deep-Sea Offshore Wind-Power-to-Ammonia: A Case Study of Fujian Province

Author

Listed:
  • Xiaoying Zheng

    (State Key Lab of Power System Operation and Control, Department of Energy and Power Engineering, Tsinghua University, Beijing 100084, China)

  • Pei Liu

    (State Key Lab of Power System Operation and Control, Department of Energy and Power Engineering, Tsinghua University, Beijing 100084, China)

Abstract

Deep-sea offshore wind power is crucial for reducing emissions in certain regions’ energy transitions. However, its development has been largely overlooked due to its high investment costs and fluctuation. Ammonia production offers a significant opportunity to enhance economic feasibility and facilitate energy consumption. This study, using a bottom-up model and based on the energy system of Fujian Province, China, examines the technical pathways for offshore wind-to-ammonia production. Through extensive scenario calculations, the study analyzes economic factors affecting the development of DOWD. The results show that when ammonia prices range from USD 0.52 to USD 0.6/kg, the deep-sea offshore wind with ammonia production (DOWD+AP) mode demonstrates its advantages, while the price of a single DOWD unit must fall below USD 1.73/W to show superiority. It is recommended that the installation of DOWD in Fujian province should not begin before 2040, with potential ammonia production capacity reaching 24 Mt/year. If ammonia production is unrestricted, the DOWD+AP mode could introduce a new method for flexible regulation, primarily compensating for gaps in solar- and wind-power generation during the summer months.

Suggested Citation

  • Xiaoying Zheng & Pei Liu, 2024. "An Economic Analysis of Mid- to Long-Term Prospects for Deep-Sea Offshore Wind-Power-to-Ammonia: A Case Study of Fujian Province," Energies, MDPI, vol. 17(24), pages 1-18, December.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:24:p:6301-:d:1543268
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/24/6301/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/24/6301/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fasihi, Mahdi & Weiss, Robert & Savolainen, Jouni & Breyer, Christian, 2021. "Global potential of green ammonia based on hybrid PV-wind power plants," Applied Energy, Elsevier, vol. 294(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oyewo, Ayobami Solomon & Solomon, A.A. & Bogdanov, Dmitrii & Aghahosseini, Arman & Mensah, Theophilus Nii Odai & Ram, Manish & Breyer, Christian, 2021. "Just transition towards defossilised energy systems for developing economies: A case study of Ethiopia," Renewable Energy, Elsevier, vol. 176(C), pages 346-365.
    2. Ives, Matthew & Cesaro, Zac & Bramstoft, Rasmus & Bañares-Alcántara, René, 2023. "Facilitating deep decarbonization via sector coupling of green hydrogen and ammonia," INET Oxford Working Papers 2023-04, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    3. Rezaei, Mostafa & Akimov, Alexandr & Gray, Evan MacA., 2024. "Techno-economics of renewable hydrogen export: A case study for Australia-Japan," Applied Energy, Elsevier, vol. 374(C).
    4. Lopez, Gabriel & Galimova, Tansu & Fasihi, Mahdi & Bogdanov, Dmitrii & Breyer, Christian, 2023. "Towards defossilised steel: Supply chain options for a green European steel industry," Energy, Elsevier, vol. 273(C).
    5. Zhao, Fei & Li, Yalou & Zhou, Xiaoxin & Wang, Dandan & Wei, Yawei & Li, Fang, 2023. "Co-optimization of decarbonized operation of coal-fired power plants and seasonal storage based on green ammonia co-firing," Applied Energy, Elsevier, vol. 341(C).
    6. Xiong, Kang & Hu, Weihao & Cao, Di & Li, Sichen & Zhang, Guozhou & Liu, Wen & Huang, Qi & Chen, Zhe, 2023. "Coordinated energy management strategy for multi-energy hub with thermo-electrochemical effect based power-to-ammonia: A multi-agent deep reinforcement learning enabled approach," Renewable Energy, Elsevier, vol. 214(C), pages 216-232.
    7. Andrea J. Boero & Kevin Kardux & Marina Kovaleva & Daniel A. Salas & Jacco Mooijer & Syed Mashruk & Michael Townsend & Kevin Rouwenhorst & Agustin Valera-Medina & Angel D. Ramirez, 2021. "Environmental Life Cycle Assessment of Ammonia-Based Electricity," Energies, MDPI, vol. 14(20), pages 1-20, October.
    8. Wen, Du & Aziz, Muhammad, 2022. "Techno-economic analyses of power-to-ammonia-to-power and biomass-to-ammonia-to-power pathways for carbon neutrality scenario," Applied Energy, Elsevier, vol. 319(C).
    9. Kanaan, Riham & Affonso Nóbrega, Pedro Henrique & Achard, Patrick & Beauger, Christian, 2023. "Economical assessment comparison for hydrogen reconversion from ammonia using thermal decomposition and electrolysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    10. Galván, Antonio & Haas, Jannik & Moreno-Leiva, Simón & Osorio-Aravena, Juan Carlos & Nowak, Wolfgang & Palma-Benke, Rodrigo & Breyer, Christian, 2022. "Exporting sunshine: Planning South America’s electricity transition with green hydrogen," Applied Energy, Elsevier, vol. 325(C).
    11. Galimova, Tansu & Satymov, Rasul & Keiner, Dominik & Breyer, Christian, 2024. "Sustainable energy transition of Greenland and its prospects as a potential Arctic e-fuel and e-chemical export hub for Europe and East Asia," Energy, Elsevier, vol. 286(C).
    12. Keiner, Dominik & Salcedo-Puerto, Orlando & Immonen, Ekaterina & van Sark, Wilfried G.J.H.M. & Nizam, Yoosuf & Shadiya, Fathmath & Duval, Justine & Delahaye, Timur & Gulagi, Ashish & Breyer, Christian, 2022. "Powering an island energy system by offshore floating technologies towards 100% renewables: A case for the Maldives," Applied Energy, Elsevier, vol. 308(C).
    13. Armenia Androniceanu & Oana Matilda Sabie, 2022. "Overview of Green Energy as a Real Strategic Option for Sustainable Development," Energies, MDPI, vol. 15(22), pages 1-35, November.
    14. Oshiro, Ken & Fujimori, Shinichiro, 2022. "Role of hydrogen-based energy carriers as an alternative option to reduce residual emissions associated with mid-century decarbonization goals," Applied Energy, Elsevier, vol. 313(C).
    15. Kai Schulze & Mile Mišić & Nikola Radojičić & Berkin Serin, 2024. "Evaluating Partners for Renewable Energy Trading: A Multidimensional Framework and Tool," Sustainability, MDPI, vol. 16(9), pages 1-22, April.
    16. Chong, Cheng Tung & Fan, Yee Van & Lee, Chew Tin & Klemeš, Jiří Jaromír, 2022. "Post COVID-19 ENERGY sustainability and carbon emissions neutrality," Energy, Elsevier, vol. 241(C).
    17. Moreno-Leiva, Simón & Haas, Jannik & Nowak, Wolfgang & Kracht, Willy & Eltrop, Ludger & Breyer, Christian, 2021. "Integration of seawater pumped storage and desalination in multi-energy systems planning: The case of copper as a key material for the energy transition," Applied Energy, Elsevier, vol. 299(C).
    18. Sánchez, Antonio & Blanco, Elena C. & Martín, Mariano, 2024. "Comparative assessment of methanol and ammonia: Green fuels vs. hydrogen carriers in fuel cell power generation," Applied Energy, Elsevier, vol. 374(C).
    19. Martin, Jonas & Neumann, Anne & Ødegård, Anders, 2023. "Renewable hydrogen and synthetic fuels versus fossil fuels for trucking, shipping and aviation: A holistic cost model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 186(C).
    20. Yifan Wang & Laurence A. Wright, 2021. "A Comparative Review of Alternative Fuels for the Maritime Sector: Economic, Technology, and Policy Challenges for Clean Energy Implementation," World, MDPI, vol. 2(4), pages 1-26, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:17:y:2024:i:24:p:6301-:d:1543268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.