Many countries do not have the renewable energy sources needed to cover their energy demand. Therefore, they may consider importing green energy commodities like hydrogen, methane, methanol or ammonia in an effort to decarbonise. In a new paper, Moritz, Schönfisch, and Schulte (2022) analyse the global cost of producing the four green energy carriers and investigate their potential to fuel Germany by 2030.

Green hydrogen can be used as an energy carrier on its own or as a feedstock for other hydrogen-based commodities. While pure hydrogen is the cheapest to produce, it also has the highest transportation costs. Hydrogen and methane are challenging to liquefy, making CAPEX-intensive pipeline transport the most viable option. On the other hand, methanol and ammonia are easy to liquefy, making OPEX-intensive shipping possible. While green methane can be transported in existing natural gas pipelines, its production requires expensive carbon from a none fossil fuel sources.

Moritz, Schönfisch, and Schulte (2022) analyse the pros and cons and show that it is more cost-efficient for Germany to import green ammonia than to produce it locally. As a result, green ammonia may become a globally traded energy commodity, with export opportunities for countries with sea access and excessive renewable energy sources.

Moritz, Michael, Max Schönfisch, and Simon Schulte. 2022. “Estimating Global Production and Supply Costs for Green Hydrogen and Hydrogen-Based Green Energy Commodities.” International Journal of Hydrogen Energy, December. https://doi.org/10.1016/j.ijhydene.2022.12.046.