A green ammonia production in Brazil, made from the hydrogen with renewable sources, such as solar and wind energy, has a high degree of competitiveness regarding traditional methods, including fossil fuels in the national territory.
This is what the green hydrogen (LCOH) and green ammonia (LCOA) production cost index indicates. consulting CELA (Clean Energy Latin America), specialized in financial and strategic advice for companies and investors in the renewable energy sector in Latin America.
According to the company, Green ammonia currently has a local production cost of between US$539,00 and US$1.103,00 per ton, while the ammonia production from gray hydrogen (made from fossil fuels) is between US$ 361,00 and US$ 1.300,00 per ton.
CELA's index, which is updated annually, was developed based on proprietary modeling and experience across the company's multiple green hydrogen projects in Brazil.
O production cost takes into account the characteristics that Brazil has nthe regulatory, tax and renewable resources areas that power electrolysis for the separation of hydrogen and oxygen from water, and logistics, including cross-referencing data on plant investment, operation and capital cost.
The tool also shows that it is possible to produce green hydrogen in Brazil with a levelized cost between US$2,83/kg and US$6,16/kg nowadays, in some strategic locations.
In the 2024 index update, CELA also prepared a more complete report with details of decision-making for green hydrogen projects in 16 different scenarios based on 1.280 simulations, which can be purchased by interested companies by contacting CELA.
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