Taiwan Fertilizer, a stalwart in the fertilizer industry for nearly 80 years, is pivoting towards green energy with a bold initiative to convert ammonia into hydrogen. This move aligns with the global trend of net-zero emissions, positioning the company as a potential pioneer in the emerging “new hydrogen ammonia” market.
In the past two years, Taiwan Fertilizer has focused on developing clean energy solutions to create a sustainable “fifth leg” for its operations. Historically the largest supplier of liquid ammonia in Taiwan, the company aims to leverage this resource beyond its traditional use as a fertilizer raw material. Chairman Li Sunrong highlighted the potential of using ammonia for co-firing in coal power plants, reducing coal consumption and carbon emissions, and cracking ammonia into hydrogen to generate clean energy.
To support this initiative, Taiwan Fertilizer has committed an additional NT$3 billion to construct two new storage tanks, adding to its existing capacity of 40,000 tons. This investment includes an ammonia and hydrogen cracking plant, designed to establish a robust hydrogen energy platform.
On June 27, Taiwan Fertilizer announced a memorandum of understanding (MOU) with South Korea’s Samsung C&T to collaborate on developing low-carbon liquid ammonia. Samsung C&T’s large-scale ammonia production projects in the Middle East and Australia will complement Taiwan Fertilizer’s efforts, enhancing domestic supply and boosting international competitiveness.
Ammonia’s advantage as a zero-emission fuel makes it an attractive alternative to traditional fossil fuels. Its applications include coal-fired power generation and as a marine fuel. By converting ammonia into hydrogen, Taiwan Fertilizer aims to contribute significantly to the country’s green power supply, addressing the challenges posed by limited domestic green electricity and new regulatory pressures like the EU’s Carbon Border Adjustment Mechanism (CBAM).
Despite potential challenges in cost and transportation, the ability to transport hydrogen safely as liquid ammonia offers a viable solution. Upon arrival at its destination, liquid ammonia can be cracked back into hydrogen and nitrogen, with the hydrogen used for power generation in solid oxide fuel cells (SOFC). This innovative approach underscores Taiwan Fertilizer’s commitment to leading the green energy transition and securing its position in the low-carbon ammonia supply chain.
