Page 38 - Phelan Energy Green Ammonia Plant Egypt
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Green Ammonia Pricing
Green Ammonia Pricing
MARKET DIRECTION
o Themarketdirectioniscrystalclear,thegrowthisclearandobvious.Themarketwillhavetopayapremiumforascarce commodity.
o Forbigbrandhigh,profilecompanies,andcountries,theyareirreversiblycommitted,totheirconsumers,andelectorateto rapidly decarbonize.
Against this background to build a sound investment case, the key question is - What is the cost to Phelan Hydrogen to manufacture Green Ammonia in Egypt?
PEG PRICING
This report and our detailed Green Ammonia Financial Model deals extensively with the costs of Green Ammonia/ Hydrogen.
o The precise answer is the Levelized Cost Of Production of Green Ammonia for PEG is $670/MT
o Our average cost of production for Green Ammonia during the lifetime of the project is $477/MT FOB Egypt.
o On the basis of a 14% Equity Internal rate of Return, the Project would need to sell its output at $730/MT in 2025. o The Levelized Cost Of Production of Green Hydrogen for PEG is $2.12/Kg (equivalent NH3 of $670/MT).
*Extracted from PEG/Egypt base case Financial Model
© Phelan Energy Group
