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1 [1] (December 7, 2022)

handle is hein.crs/govejqu0001 and id is 1 raw text is: s Congressional Research Service ManM Informning the Iegiative debate since 1914 December 7, 2022 Ammonia's Potential Role in a Low-Carbon Economy Ammonia, composed of nitrogen and hydrogen (NH3), is the second-most produced chemical in the world by mass, according to a 2022 publication from the International Renewable Energy Agency (IRENA). Most ammonia is used to produce fertilizer. Ammonia production is energy intensive and emits greenhouse gases. In the same report, IRENA estimated that ammonia production represents 15- 20% of all carbon dioxide (CO2) emissions from the chemical sector. Some ammonia applications also release nitrogen oxides, a potent greenhouse gas that can trap more heat than CO2. Experts view decarbonizing ammonia production, referred to as low-carbon ammonia, as expensive, but this cost could fall should costs of hydrogen produced from renewable energy or fossil fuels paired with carbon capture lower. Ammonia is seen as a potential hydrogen carrier and as a fuel for ocean-going vessels. These potential end-uses could employ existing infrastructure supporting a well-established global ammonia trade. Today's Ammonia Economy Ammonia is produced through a high-pressure, high-heat catalytic reaction of nitrogen and hydrogen. The nitrogen is generally obtained from air and the hydrogen from a fossil fuel feedstock. Around 183 million metric tonnes (Mt) of ammonia is produced annually worldwide. Figure 1. Ammonia Feedstocks Natural Gas (72%) Naplhlha (1%) 'rCal (22%) SOther (1%) Heavy Fuel Di (4%) Source: IRENA, Innovation Outlook: Renewable Ammonia, May 2022, https://www.irena.org/publications/2022/May/Innovation- Outlook-Renewable-Ammonia. Notes: Naphtha and heavy fuel oil are petroleum products. Feedstocks Due to the comparatively low costs of natural gas and coal, almost all ammonia today is produced from fossil fuels. Over 70% of ammonia is generated from natural gas, and over 20% is generated from coal (Figure 1). IRENA estimates that less than 0.02 Mt of global ammonia produced in 2021 was renewable ammonia, which IRENA defines as produced from renewable hydrogen, which in turn is produced via water electrolysis using renewable energy. Ammonia is produced globally. China produces almost a third of the world's ammonia supply (Figure 2), using coal as the primary hydrogen feedstock. The United States and most other producers use natural gas. In 2021, the United States had 35 active ammonia production plants across 16 states, with 60% of production capacity located in Louisiana, Oklahoma, and Texas. Figure 2. World Ammonia Production, 2021 Mt Source: U.S. Geological Survey, Mineral Commodity Summaries, NITROGEN (FIXED)-AMMONIA, January 2022, https://pubs.usgs.gov/periodicals/mcs2022/mcs2022-nitrogen.pdf. Global Trade A well-established global ammonia trading system features pipelines, tankers, and infrastructure at around 200 ports. According to IRENA, 18-20 Mt of ammonia is shipped around the world annually. Ammonia can also be transported via truck, train, and pipeline. The United States is an active participant in this market, exporting almost 19% of its domestically produced ammonia, and importing about 14% of its total consumption, according to the U.S. Geological Survey (USGS) in 2022. The USGS reports that top import sources for the United States for 2017-2020 were Trinidad and Tobago (63%), Canada (34%), and Venezuela (2%). Uses and Demand: Fertilizer and Other Chemicals According to the International Energy Agency's (IEA) in 2021, 70% of all ammonia produced globally is used to Pistr Ira Unt d S ,at