Decarbonisation in Japan: Ammonia-coal co-firing versus renewables

Summary

Japanese utilities exploring the case for co-firing of coal with ammonia to reduce carbon dioxide emissions. By 2050, the cost of a retrofitted coal power plant running 100% on clean ammonia is expected to be at least $168/MWh. This is more expensive than the LCOE of renewable alternatives such as offshore wind, onshore wind or solar with co-located batteries. Japan would be better served accelerating the deployment of renewable energy to decarbonize its power sector, said Isshu Kikuma, Japan analyst at BNEF and lead author of the report. Kikuma said:

Japan is better off in prioritizing the limited supply of high-cost clean ammonia for decarbonization of applications such as fertilizer production. The full Japans Costly Ammonia Coal Co-Firing Strategy report is publicly available in both English and Japanese.