TECHNICAL ECONOMIC ANALYSIS OF OPTIMIZATION OF RENEWABLE HYDROGEN PRODUCTION CHAIN FOR USE IN AMMONIA PRODUCTION IN MINAS GERAIS

This work aims to estimate the theoretical production potential of renewable hydrogen for use in ammonia production in Minas Gerais and assess the economic viability of the proposed systems. Using mixed integer linear programming with LINGO 20® and Excel® software, the optimization model confirmed the viability of the ammonia production routes, demonstrating the profitability of the project. The highest investment was found in case 3 (0.00041 M$/ton.NH3), offset by the low cost of the raw material. Case 1 had the second highest investment due to the installation of PEM electrolysis cells (0.00024 M$/ton.NH3), while cases 2 and 4 had lower investments. Sales revenue was 0.0015 M$/ton.NH3 in all cases. Long-term economic sustainability requires continuous optimization, cost management and consideration of the specific context of each project.

Publication Details

Published
2024-11-22
DOI
https://doi.org/10.55592/ise.v2i1.11167
Primary Topic
Climate Change Policy and Economics
Type
article
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article

TECHNICAL ECONOMIC ANALYSIS OF OPTIMIZATION OF RENEWABLE HYDROGEN PRODUCTION CHAIN FOR USE IN AMMONIA PRODUCTION IN MINAS GERAIS

Climate Change Policy and Economics
article

TECHNICAL ECONOMIC ANALYSIS OF OPTIMIZATION OF RENEWABLE HYDROGEN PRODUCTION CHAIN FOR USE IN AMMONIA PRODUCTION IN MINAS GERAIS

article en

Abstract

This work aims to estimate the theoretical production potential of renewable hydrogen for use in ammonia production in Minas Gerais and assess the economic viability of the proposed systems. Using mixed integer linear programming with LINGO 20® and Excel® software, the optimization model confirmed the viability of the ammonia production routes, demonstrating the profitability of the project. The highest investment was found in case 3 (0.00041 M$/ton.NH3), offset by the low cost of the raw material. Case 1 had the second highest investment due to the installation of PEM electrolysis cells (0.00024 M$/ton.NH3), while cases 2 and 4 had lower investments. Sales revenue was 0.0015 M$/ton.NH3 in all cases. Long-term economic sustainability requires continuous optimization, cost management and consideration of the specific context of each project.

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