The Daily Kos Energize America team is now working under a serious deadline. We are working together, with the entire community to develop a set of potential items for Congressional action at the direct request of a senior member of Congress. We have a DEADLINE -- COB Wednesday for a package ...
This diary lays out a concept for using wind power to replace natural gas in the production of America's fertilizer.
direct request
Please review this draft and post to this diary with your suggestions.
For those of you with the skills to take this document from its current state and convert it into a professionally drafted proposal, using the EA2020 templates, kindly please take it upon yourself to do so. I do not have this ability, but I know that DKos is the place to go to find intelligent and qualified people willing to sacrifice their time for the greater good.
Here is the draft:
Renewable Energy Based Ammonia Production
Objective
To provide agricultural entities with ammonia fertilizer produced with renewable fuels.
Description
This legislation will provide $325M over a three (3) year period for three (3) test projects in the Great Lakes and Great Plains regions.
This legislation will provide grants to entities for producing ammonia fertilizer with wind power via hydrogen electrolysis and in a manner that enhances grid stability.
Retrofit abandoned steel mills (brownfields) in Ohio, New York and/or Indiana.
45MW delivered of renewable (about 110 to 135 MW of wind turbine capacity) electricity per test facility. H2 storage to allow for variable electricity consumption with constant NH3 production; the variable electricity consumption would be tailored to use non-peak electricity, or less electricity during peak grid demand periods Each test facility will generate 40 to 50,000 tons NH3 annually generating $20 million revenue (at $400/ton NH3).
This legislation will provide:
• funding for the establishment of a wind turbine construction facility in the Great Lakes and Great Plains regions to support these test facilities.
• Indirect funding for the electricity source via some (25%) percentage of community/regional owned electricity generation – remainder by tender using 20 year terms for Power Purchase Agreements
• Low cost CREBs (Clean Renewable Energy Bonds) or municipal bond financing (with bond guarantees/insuranc/eFederal backing for purchase of the electricity generation system.
• State/Regional/Federal funding of H2 storage/buffer system that will allow the 110-135 MW of electrical generation capacity to be used in a way to stabilize electrical grid via a variable demand arrangement, which will consume less electricity in peak times-low wind generation times and more electricity in non-peak grid consumption-high wind generation periods.
• Design of NH3 production facilities based on pure H2 sources (including design via National Renewable Energy Laboratory guidance/review), allowing higher productivities, improved catalyst activity versus conventional H2 sources based on fossil fuels.
• Low cost funding for the hydrogen and ammonia production facility design and construction and long term purchasing agreements form the product(s)
• Operating subsidies a function of the price of NH3 fertilizer and natural gas price, which will disappear when natural gas prices exceed $15/MBtu. Also, sale of carbon trading units/Renewable Energy Credits to be considered as operating subsidies. Electricity producing systems to be eligible for REPI benefits if community owned. Perferable to have many communities own wind turbines, and to aggregate output to NH3 facility via existing electricity grid.
• Obtain long term sales agreements for the produced ammonia from these facilities for (mostly) agricultural uses, which will provide crop production security from natural gas price spikes
Benefits
This legislation will
- Create new jobs through increased economic activity,
- Increase awareness of renewable energy and energy efficiency capabilities and benefits at the local and state levels to meet both public and private requirements,
- Spur the development of public and private sector expertise and capabilities in renewable energy for design, construction, installation, and maintenance of these systems.
- Drive market demand for appropriate new technologies and approaches for energy efficiency and renewable energy in all regions of the United States.
- In addition to providing rural areas with dependable supplies of domestically made NH3, small to medium sized NH3 facilities would provide a way to recycle financial resources in the community, and would provide stable and predictable prices for NH3, which is essential to moderate and high yield agriculture that is commonly practices in the US. Given the recent price increase for corn, many farmers will actually be in a position to purchase NH3 priced at $400 to $600 per ton.
- Reduce natural gas consumption by 2250 million standard cubic feet per year per plant, or 6.75 billion scf per year. For 3 facilities (3 plants generating 50,000 tons NH3 annually).
Investment
The Federal Government will invest $325 million dollars over a three (3) year period to provide for this legislation (design of NH3 facilities), and to provide loan guarantees/low interest or no interest loans for the wind turbines/other renewable electricity sources.
Key Messages
- Free agricultural production from significant amounts of natural gas pricing with respect to ammonia production.
- Provide an enhanced value for electricity, which is often a low value product in many rural ragions of this country.
- Provide pricing stability for ammonia, a key input in the production of key crops, such as corn and wheat.
- Encourage the production of key items of commerce from renewable energy, and not depletable fossil fuels.
- Demonstrate production of ammonia in a way that does not produce noticeable quantities of CO2 pollution.
- Provide the basis for a new export industry (renewable NH3 plants, modular in size, and which do not depend upon the use of natural gas, coal or result in CO2 pollution.