Blue is the new green.

At least for the Germans, in their frantic search for an alternative to Russian gas.

In this perspective, a track is more and more often mentioned in Berlin – and which also appears to be less polluting: ammonia and blue hydrogen.

To be precise, these are in fact variants, supposed to be less polluting, of ammonia, already used in particular for the manufacture of fertilizers, and of hydrogen.

Variants that could be an alternative to gas or coal to produce energy.

50 shades of ammonia

On September 25 and 26, German Chancellor Olaf Scholz did not visit several Gulf countries solely with the objective of increasing imports of Qatari liquefied natural gas (LNG).

He also met with representatives of the United Arab Emirates and, above all, Saudi Arabia to discuss imports of this blue ammonia, and future partnerships for the production of more ecologically acceptable hydrogen.

Ditto for Robert Habeck, the Minister of the Economy, who had already discussed ammonia and blue hydrogen during a trip to the United Arab Emirates in March 2022. The Gulf countries are currently playing the leading roles in the rush. on this "green" gold supposed to replace black gold.

Following Robert Habeck's visit, the Germans "began to adapt one of their port terminals in the north of the country to be able to accommodate deliveries of blue ammonia and store it", underlines Agustin Valera-Medina, engineer at Cardiff University who works on hydrogen and blue ammonia.

Located in the coastal town of Brunsbüttel, about a hundred kilometers from the Danish border, this terminal must be ready before the end of the year… and the entry into force of the total embargo in Germany on Russian hydrocarbons.

Germany's interest in blue ammonia is partly explained by the fact that "the price of renewable energies has fallen" and that this prospect "is starting to become a realistic alternative", notes Richard Nayak-Luke, engineer at the University College London, which notes that “the war in Ukraine has forced the hand of European countries to accelerate the transition”.

If this option works for Germany, Europe could be encouraged to follow this path, underlines the American economic channel Bloomberg.

Except that it's neither as easy nor as eco-friendly as it may seem.

Currently there is a whole palette of shades of ammonia and hydrogen.

We are talking about gray, green, blue, turquoise and even pink hydrogen.

It all depends on how these resources are crafted.

Almost all of the hydrogen produced and sold comes from fossil fuel sources, such as natural gas or oil.

This is called the “grey” variety.

In concrete terms, the most common method consists of “taking gas, such as methane, and water, which is heated to transform it and extract both hydrogen and CO2 from it”, explains Cédric Philibert. , Senior Analyst of Energy Issues at the French Institute of International Relations (Ifri).

It is therefore a process that involves both methane and CO2, two greenhouse gases. 

Mission: capture CO2

Then, “65% of the hydrogen produced is synthesized and used to manufacture ammonia”, specifies Agustin Valera-Medina.

This ammonia is used massively to “produce fertilizers, but is also used in the chemical and textile industry.  

Ammonia is also important because it plays a role in the hydrogen trade.

This gas is much easier to transport in the form of ammonia.

When a country, like Germany, wants to import hydrogen from the Gulf countries to use instead of Russian gas, it is first synthesized into ammonia for the trip before being transformed back into hydrogen in its port of arrival. 

“It is estimated that ammonia is responsible for around 2% of global greenhouse gas emissions”, summarizes Richard Nayak-Luke.

At the other end of the color palette is hydrogen green.

It is developed using only renewable energy sources, such as the wind or the sun.

The resulting ammonia is then also “decarbonized”. 

But this time the problem is economic.

Because this paradise for defenders of renewable energies is still very theoretical because the necessary installations are very expensive.

Despite a drop in renewable energy prices, "green hydrogen still requires investment, and I don't think it will be able to have a noticeable impact on energy production until at least 2028," notes Gniewomir Flis, an independent analyst, renewable energy specialist. 

Between these two extremes there is blue.

If the Germans are touting blue ammonia as a big leap forward to decarbonize their economy, "it's a bit of a false track put forward by Berlin since the Merkel era to hide the limits of its energy transition," says Volker. Quaschning, a specialist in renewable energies at the University of Berlin, interviewed by the BBC.

Indeed, at the origin of blue hydrogen, there are also fossil fuels.

The only difference with its “grey” cousin is “that we capture the CO2 during production to store it”, explains Cédric Philibert.

This greenhouse gas is therefore not released into the atmosphere.

This is a major nuance because, thus, hydrogen and blue ammonia are not supposed to contribute to global warming.

Except that we are “at the beginning of the beginning of the commercial exploitation of blue ammonia”, emphasizes Gniewomir Flis.

There is currently only one country that produces and exports it: Saudi Arabia.

And when Germany buys it, it is not certain that the planet will gain from it – because here too, it is transport that can pose a problem.

Dependence on Saudi Arabia instead of Russia?

Firstly because of transport.

“Between the production of hydrogen and the transport of ammonia in tankers, which are very polluting, this process probably generates more CO2 than if the energy were produced locally from gas in Germany”, estimates Agustin Valera-Medina. 

Then, the problem of CO2 capture and storage remains.

“Current technologies make it possible to capture around 60% of the CO2 during the formation of hydrogen.

I think that the progress will make it possible to capture more than 90%.

But there will still be some CO2 that will be released into the atmosphere,” explains Gniewomir Flis.

This is better than using gas or coal in power plants, but not necessarily ideal. 

“We also don't know what the long-term environmental impact of all the CO2 that will be stored underground is,” adds Agustin Valera-Medina.

In the case of Saudi Arabia, the captured CO2 is also used… to extract more oil.

“It's neither new nor unusual for the use of CO2 because the carbon dioxide increases the pressure to release oil that is otherwise difficult to reach.

But that puts the 'green' aspect of CO2 capture into perspective,” notes Bloomberg. 

An argument which, however, does not convince the experts interviewed by France 24. First, “because there is always a part of the CO2 thus injected to extract oil which will remain underground”, underlines Cédric Philibert.

Then, because in the absence of CO2, “there would surely have been other wells built to reach the deep deposits, which would probably have been even worse for the environment”, affirms Gniewomir Flis.

Finally, by betting on ammonia and blue hydrogen, aren't countries like Germany an invitation to trade dependence on Russia for another, that on the Gulf countries?  

Indeed, Saudi Arabia and its neighbors have decided to take the lead in the hydrogen and blue ammonia sector.

"They know that there will be a time when they can no longer export their fossil fuels, and they are starting to diversify," said Gniewomir Flis.

These countries could invest massively in green hydrogen since there are, in this region, vast expanses to install fields of solar panels.

But the blue variety has a very political advantage: “it does not upset the structures in place, since it is the same actors and installations of the oil and gas sector which intervene”, explains the independent analyst.

But for him, this is only the beginning of the adventure.

Projects exist in Norway, the United States, Australia and Namibia.

There will therefore be “a much wider choice of exporting countries than in the case of Russian gas”, wants to believe this expert.

The best option, however, remains to consider the use of hydrogen and blue ammonia as “a transition phase, pending the development of the 'green' alternative”, believes Richard Nayak-Luke.

European countries such as Germany are developing their infrastructures to store ammonia and hydrogen and when the prices of renewables have dropped sufficiently, they will be ready to launch their own production of “green” hydrogen.

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