In the transition to the carbon free energy production Ammonia has been identified as a potential fuel source. Solar panels can be placed far from power transmission lines and allow Hydrogen to be produced by electrolysis. The problem with hydrogen is that it is liquid only at extremely low temperatures of -253 degrees Celsius or at 700 times atmospheric pressure. The electrical conversion of hydrogen to Ammonia makes the transport of the energy contained in the Hydrogen more practical. Ammonia’s liquid temperature is just -33 degrees Celsius and it requires low pressure storage.
Hexagon energy (listed on the ASX as HXG) intends to produce ammonia for the new green energy market. But how successful will they be?
By doing a very small amount of reading a number of problems arise. Firstly the incomplete combustion of Ammonia can produce nitrous oxides which are hundreds of times worse for the atmosphere than carbon di oxide. While not especially dangerous to humans, ammonia is also highly toxic to aquatic animals which lack a metabolic pathway to remove it from their bodies. I also would see a risk for widespread ammonia in allowing explosive ammonia nitrate to be produced by people who are not responsible. As an investment I personally am very skeptical that it will be widespread. Perhaps it will have a use as a fuel in special situations, such as rocketry, but I will be very surprised to see widespread adoption due to the risks mentioned.
