Page 31 - Phelan Energy Green Ammonia Plant Egypt

Plant Power Supply
o Only 30% of the Project investment relates to the manufacturing of Green Ammonia. The entire Green Ammonia process equipment longevity is governed by the number of hours used. Our Financial Modelling shows that the optimum investment return, and the most cost-effective capital expenditure plan is to operate the manufacturing plant within normal solar power production hours.
o This low-cost energy period can be increased, by 2-3 hours by the use of Wind Power.
o Ammonia synloop cannot be ramped up or down quickly, and hence is required to run 24/7. The excess hydrogen produced during the day can be stored and used for production of
ammonia during the night. There are a number of key options that can be examined, should the energy price and availability change.
Use of Battery Energy Storage System (BESS)
BESS can be used to store the renewable energy generated during the day for utilization in the plant during the night. Using BESS ensures reliable supply of power; however, it increases the capital expenditure significantly, making it an unattractive source for meeting nighttime power requirements of the project
Use of Wind Power
Wind Energy can be utilized at night for the operation of the plant as it can complement the generation from solar PV plant and can help in managing plant load during night. Due to intermittent nature of wind energy, it needs to be supplemented with a battery system to ensure reliable supply of power
Using hydrogen as power source
Hydrogen produced during the day can be stored and used as a power source for the plant during nighttime. Hydrogen turbines are expected to be commercially available for this purpose in the next few years; hence this may be used for the future phases
Grid Banking
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Surplus renewable power generated during the day can be exported to the external grid and power from the grid can be imported for plant operation during night. Some important considerations while using grid for meeting power requirements are:
• Green Certification - The grid power might mostly be produced using fossil fuels, and thus consuming the grid power for generation of ammonia might lead to concerns regarding the green-ness of the final ammonia produced by the off-takers
• Technical feasibility - A detailed analysis is required to assess the grid’s technical capabilities to intake large loads of renewable power from the Regeneration E- Complex and its ability to sell back the power to the plant, especially if the arrangement is expected to be on a spot basis (instead of a long-term basis). Multiple green hydrogen plants in the region are expected to have similar requirements, increasing the load on the grid
• Commercial viability - The option may not be economically feasible if the grid sells power to the Project at a higher price as compared to the price at which it purchases power from the Project. Also, the grid may not be able to find downstream buyers for the power sold by the plant on spot basis, and it may not be able to source power required by the plant on spot basis
• Regulatory issues - There are multiple green ammonia projects being planned in Egypt, all of which may be targeting to obtain similar provisions. Government IPP procurement guidelines may not allow to purchase energy from plant without tendering process etc., grid banking regulations would need to be developed in the country
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