Linde Engineering wins 24 MW electrolyzer order from Yara Norge

Linde Engineering has signed an agreement to build a 24 MW electrolyzer at Yara Norge's Porsgrunn site in Norway as the fertilizer producer seeks to decarbonize its ammonia production, Linde Engineering and PEM electrolysis partner ITM Power of the UK said in separate statements Jan. 28.

Ammonia production involves large volumes of hydrogen, currently produced via steam methane reforming. The largest use of hydrogen produced from hydrocarbons is in the production of ammonia for fertilizers.

"Yara intends to start replacing this grey hydrogen with green hydrogen produced from renewable energy and electrolysis," ITM said.

Yara Porsgrunn is in the Heroya industrial park, 140 km southwest of Oslo. It produces 3 million mt of fertilizer a year.

The 24 MW electrolyzer system is to supply 10,368 kg/day of hydrogen and account for 5% of the plant's consumption, "serving as a feasibility study for future upscaling," ITM Power said.

This equated to annual production of 20,500 mt of ammonia, enough for 60,000-80,000 mt/year of green fertilizer, Linde Engineering said.

The PEM electrolysis system is to be shipped in Q4 2022. The site is expected to supply its first green ammonia-based products in mid-2023.

Yara is to receive a grant of up to NOK 283 million ($31.49 million) to invest in the project from Norwegian state funding body Enova.

"The Porsgrunn plant is one of Norway's largest sources of CO2 emissions outside the oil and gas industry, emitting around 800,000 tonnes per year," ITM Power said.

The electrolyzer, fed by renewable power, would reduce the plant's CO2 emissions by 41,000 mt/year.

"The project aims to supply the first green ammonia products to the market as early as mid-2023, both as fossil free fertilizers, as well as emission free fuel for ships," said President of Yara Clean Ammonia, Magnus Ankarstrand.

Green ammonia was "the key to reducing emissions from world food production and long-distance shipping," he said.

S&P Global Platts assessed the price of ammonia (CFR Northwest Europe) at $1,155/mt Jan. 27, having peaked at $1,242/mt Dec. 21.

It assessed the price of hydrogen (PEM electrolysis, including capex, Netherlands) at Eur14.99/kg Jan. 27, down from Eur29.24/kg Dec. 22.