Smelly but clean: How ammonia might kill coal under the IRA

By Benjamin Storrow | 05/16/2024 06:55 AM EDT

Biden’s climate law is funding “green ammonia” projects in hopes of using the chemical to power the grid, fuel cargo ships and make fertilizer.

President Joe Biden speaks on the anniversary of the Inflation Reduction Act at the White House last August.

President Joe Biden speaks on the anniversary of the Inflation Reduction Act at the White House last August. Evan Vucci/AP

The stinky ammonia under your sink comes from one of the world’s dirtiest industries. That might change with the help of President Joe Biden’s climate law.

Ammonia production is a carbon-intensive process that uses fossil fuels to make the pungent-smelling chemical, which is often used to make fertilizers. But some companies think it could also as a carbon-free fuel for cargo ships or to generate electricity.

Its climate stakes are massive. But so is its potential for clean energy — because it doesn’t release any carbon emissions at the point of use.

Advertisement

A Danish company named Topsoe is planning to build a factory in Virginia that will produce electrolyzers, a device that can make clean hydrogen when powered by solar or wind energy. The electrolyzers will be installed at a new plant in Texas that plans to use the hydrogen to make “green ammonia,” which will be sold to a German power company. The Inflation Reduction Act is driving the investments for both facilities by offering billions of dollars through advanced energy programs.

GET FULL ACCESS