Green Ammonia Cost Model

Green Ammonia Cost Model


On its own, The Ammonia Report is a sharp tool that cuts through noise and confusion; but with so much new investment in low-emission fuel alternatives, things are changing rapidly. Accordingly, subscribing to The Ammonia Report includes not only access to our analysis, but also to a financial modeling tool, with which experienced users will be able to estimate the cost of carbon-free (green) ammonia under ever-changing assumptions.

Forecasting the strike price of green ammonia in the period 2030 to 2050 is a particular challenge given the current lack of both production and a market for the fuel. We developed the Green Ammonia Cost Model to answer the question, “What might it cost to operate a vessel fueled by green ammonia?”

The model calculates a nominally achievable price of carbon-neutral ammonia (that is profitable for its investors) using user-defined technical and financial variables and a set of simplifying assumptions. It allows for varying amounts of both (wind, solar) renewable and grid electricity to produce green electrolytic ammonia, the cost of which is offset by the sale of excess oxygen and electricity, making it adaptable to many different regions of the world, both grid-connected and island-able.

To take advantage of our analysis and financial model, become a paid subscriber and download both. Subscribers who'd like further assistance developing their own pricing scenarios will have access to our analysts during the initial 90 days of their subscription and afterwards on a pay-as-you-go basis.