Financial Modelling via Excel & OneDrive

Clean Hydrogen Production & Integration into an Ammonia Complex

Background

It would be hard to ignore the global warming threat facing humanity. Many governments are doing the responsible thing by embracing clean energies and products (where no Co2 is produced) by contributing towards carbon credits and with other incentives. I stumbled upon a project that might provide some insight into the financial implications of choosing thi morally correct path. This particular project is interesting in that it has some flexibility in the way the plant can be operated in order to leverage on price variations of Natural Gas (NG), Hydrogen (H2) and Carbon Credits (CC).
The project involves using a wind farm to power an electrolyser to produce hydrogen from water. The hydrogen can be sold into the transport market or used to replace the NG based hydrogen feedstock to an ammonia plant. The power from the wind farm can also be used to replace the NG based power to the fertilizer complex. These two decision control points may allow one to exploit price movements of NG, H2 and CC to maximise the plants profitability. Every time NG gets replaced by free wind effectively one has a saving on NG cost and the CO2 produced during both power generation and H2 production. Some limitations do exist as to when the H2 feedstock to the ammonia plant can be replaced due to the stoichiometry of the reactions. Presented below are models for return on investment (ROI) and a discounted cash flow rate of return analyses (DCFRoR). The convention used is that green cells can be altered to do your own modelling. The projects flowsheet, prices, exchange rates , nameplate capacities and stoichiometries are shown after the modelling section.

Modelling Sheets

Return on Investment (ROI)

ROI Sensitivity

The ROI sensitivity is only shown for the more profitable option of selling all the H2 produced.

Discounted Cash Flow Rate of Return (DCF RoR)

Note: The embedded graph is not dynamic

Nameplate capacities, prices, costs and other fixed inputs

Flowsheet

This sheet is not linked to the financial modelling sheets. Altering H2 and Urea production (green cells) is FYI only.

Nameplate Capacities

Prices

Operating Costs

Overall Reactions

Molecular Masses & Stoichiometry

Observations

Technologies used - discussion