The U.S. Department of Energy is now backing continued research of an incredible fuel…
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The U.S. Department of Energy is now backing continued research of an incredible fuel that has up to three times the energy content of gasoline.
More importantly, it could be the only fuel on earth that produces zero emissions when burned.
Until recently, this remarkable fuel was considered too dangerous and expensive to be used commercially…
But a new technological breakthrough appears to have made the adoption of this super fuel much more likely.
In a market that’s projected to grow to over $81 billion.
Not a bad position to be in when the DOE has expressed its commitment to continued research for the comprehensive development, demonstration, and commercialization of this energy source.
This up-and-coming energy source harnesses the second-most widely used inorganic chemical in the world…
So supply shouldn’t be an issue.
But getting your hands on the technology that makes this all possible… well we think that is no easy task.
HARNESSING A RENEWABLE ENERGY SOURCE THAT MAY BE 3X MORE POWERFUL — AND CLEANER — THAN GASOLINE
Throughout the history of the energy industry, new–more powerful–sources of energy have started off small … and then come to dominate the industry for a time.
From coal … to petroleum … to natural gas… And now, renewables.
Each new energy source had a scientific problem to overcome before widespread adoption.
With coal, the advancement of the steam engine in the 19th century dramatically improved the efficiency of coal mining and transport during the Industrial Revolution.
With petroleum, the Scottish chemist James Young devised a method to refine paraffin from crude oil for easy transport.
With natural gas, it was being able to cool it to -160° C to form Liquefied Natural Gas (LNG) so it could be used for profitable and safe transportation in ships.
For decades, scientists have been researching how to bring one new energy source – an energy source with nearly three times more energy than gasoline–online.
And now one unknown company (with a former NASA scientist at the helm) may have figured out the next stage of the renewable story…
In short: We think this company could become one of the biggest beneficiaries of a new market that might take over renewables…
NEW RENEWABLE: THE DEATH OF LITHIUM?
For decades, lithium had been thought to be the solution to the clean energy movement.
Unfortunately, it has been proven that lithium will not be able to provide enough power for long-range trucks… ocean-going freighters… military vehicles…trains… planes… jets, and more.
Why? The story of energy transitions through history has been a constant move toward fuels that are more energy-dense and convenient to use than the fuels they replaced.
Fossil fuels are the most energy-dense, making them hard to replace.
At 53.1 MJ/kg, natural gas boasts the highest energy density of any fossil fuel, followed by gasoline at 45.8MJ/kg, and coal at 30.2MJ/kg.
Lithium-ion batteries–one of the most effective ways to store renewable energy–can only afford an energy density of 0.504MJ/kg. That’s 91 times less energy density than gasoline!
So, while lithium could become the predominant energy carrier for small vehicles like cars and small vans…
It simply doesn’t appear to have enough power density to become practical for HEAVY industries.
But now finally… scientists may be able to harness a NEW renewable replacement that CAN easily power heavy industry.
So, what has nearly 3X more energy than gasoline?
And is a widely used inorganic chemical?
But, until now, the technology didn’t exist to transport it safely and economically.
Here are five reasons to look seriously at this company, now:
#1 AmmPower IS DEVELOPING TECHNOLOGIES FOR AN $81 BILLION ENERGY OPPORTUNITY
After decades of stagnation and multiple false dawns, we think the hydrogen economy now appears primed for a major takeoff.
Entire countries and industries are proactively investing in the development of hydrogen technologies.
Hydrogen is now being dubbed by some as a ‘fuel of the future.’
Meanwhile, some are predicting that hydrogen could become a globally-traded energy source, just like oil and gas.
Bank of America says hydrogen technology is at a tipping point and could be set to explode with a total market potential reaching $11 trillion by 2050.
Last year, the European Union set out its new hydrogen strategy… and now, the private sector may be looking to give the EU a run for its money.
Some of the world’s green hydrogen leaders have joined hands with an ambitious goal to drive a 50-fold scale-up in green hydrogen production over the next six years.
The Green Hydrogen Catapult Initiative is another huge endeavor founded by Saudi clean energy group ACWA Power, Australian project developer CWP Renewables, European energy giants Iberdrola and Ørsted, Chinese wind turbine manufacturer Envision, Italian gas group Snam, and Yara, a Norwegian fertilizer producer.
They aim to drive 25GW of green – easily transportable — hydrogen production by 2026.
That transportation breakthrough could push hydrogen costs below $2/kg, making it competitive with fossil fuels.
So what is the connection between hydrogen and ammonia?
To put it simply, hydrogen is an absolute nightmare to store and transport. Despite its incredible energy content, it has a very low volumetric energy density, which means it must be stored under incredibly high pressure. Even when compressed to 800 atmospheres, it occupies three times more volume than gasoline for the same energy. With such high pressure, it requires incredibly heavy and fortified tanks to store hydrogen. This appeared to be an insurmountable problem… until ammonia is involved.
Liquid ammonia, which is made up of one nitrogen atom and three hydrogen atoms, has a volumetric hydrogen density about 45% higher than that of liquid hydrogen. It also has the advantage of being easy and safe to store. It is ammonia, and the remarkable technological breakthroughs being made by companies like AmmPower, that may hold the key to the hydrogen revolution.
AmmPower along with a handful of smaller organizations such as Iceland-based Atmonia and Colorado-based Starfire Energy, may have a clear first-mover advantage as the only companies on the planet developing innovative ways to revolutionize the entire ammonia production process and produce carbon-free ammonia.
Through the combination of science and industrial manufacturing, we expect AmmPower’s team will look to file multiple patent applications in conjunction with the formation of intellectual property.
The company aims to spearhead catalytic research for optimal ammonia production as well as develop stable and reliable production processes.
It also intends to combine process and manufacturing techniques to develop an ammonia-producing unit. The company expects these units will be ready in prototype form in Q4 of 2021, with sales beginning in 2022.
#3 THE FIRST TANKERS MAY SOON BE TRAVELLING THE OCEAN
Until recently, the global LNG market thought it was the new god of the sea.But hydrogen and ammonia may be ready to dethrone it.
Even the World Bank has recommended avoiding LNG bunkering. Hydrogen and ammonia, it says, may offer the best long-term solutions for shipping.
According to Argus, global ammonia production currently stands at 180mn t/yr, but its potential use as an energy source and energy carrier could see demand for it rise to a multi-billion-tonne market for use in a wide range of applications.
Indeed, the global ammonia industry is predicted to reach $70.3 billion by the year 2027.
And the first hydrogen/ammonia tankers may soon be setting sail.
The supply vessel Viking Energy is being retrofitted with a 2-megawatt ammonia fuel-cell system.
Wärtsilä is reported to be working on four-stroke ammonia engine designs, hoping to reach the stage of field tests as soon as 2022. And the Finnish marine-to-energy giant is developing ammonia storage and supply systems to install ammonia fuel cells on Eidesvik Offshore’s supply vessel Viking Energy by 2023, part of the EU project ShipFC.
Image Credit: Greentech Media / Finnish power solutions company Wärtsilä is already testing an ammonia engine.
Ammonia is also being considered as a means to store renewable energy for delayed use, and as a carrier for hydrogen transportation. That’s because, as an energy source, ammonia has 9x the energy capacity of lithium-ion batteries and is 1.8X more energy-dense than liquid hydrogen.
Yet, widespread use of ammonia in these sectors can be viable only if the CO2 emissions associated with its actual production are sharply reduced. This will require significant fresh investment in new technology and, based on current renewable energy prices, a rise in operating costs.
In 2020, the International Maritime Organization (IMO) imposed a cap on marine sulfur emissions, upending the shipping industry. There’s more to come, and we think it’s all about hydrogen and ammonia.
The next major regulatory change for the shipping industry is for vessels to sharply reduce CO2 emissions.
Green ammonia is gaining particular ground, both for combustion as a marine fuel and in fuel cells on ships.
In North America, AmmPower Corp. (CSE:AMMP; OTC: AMMPF) is aiming to be a green ammonia pioneer. The company is working on developing innovative ways to revolutionize the entire ammonia production process using proprietary technologies that may potentially move away from the traditional Haber-Bosch process altogether.
# 4 AmmPower LOOKS LIKE A DIVERSIFIED ENERGY PLAY
In our view, this isn’t just a one-trick play. This company appears to have clean energy disruption potential on several levels.
AmmPower says it is building modular, scalable, stackable green ammonia-producing units that are flexible enough to fit a wide array of customers from individual organizations, large marine ports, and distribution hubs.
Its team is also working to develop a proprietary ammonia production process by incorporating innovative catalysts and refining processing conditions to more efficiently produce ammonia.
Further, AmmPower reports that it’s in the process of securing a state-of-the-art manufacturing facility in Michigan to develop optimal catalytic reactions that produce green ammonia.
The company that can figure out how to produce economical, carbon-free, and scalable ammonia may have three massive markets to sell to.
That’s exactly what Ammpower is planning. It’s focused on a process that can break water down into hydrogen and oxygen and then add nitrogen from the atmosphere to create ammonia. It’s also committed to using carbon-free energy sources.
We think the real coup is this: It’s not just designed to be efficient, mobile, and scalable, it could also allow hydrogen cracking to be done closer to the end-user. That would be a huge advancement, especially for hydrogen transportation. That might massively reduce point-to-point logistics costs.
AmmPower will aim to sell products it develops to these three huge markets: the fertilizer Industry, the fuel industry, and the transport sector.
It may start with the low-hanging fruit –selling to the fertilizer industry. Then it could target the fuel and hydrogen transport industries as those markets mature.
This three-pronged strategy helps to increase the chance of success of this approx. $62M company.
In less than 18 MONTHS from now, the company aims to deliver its first production units and ramp production to facility capacity.
That would be a tall order for many startups … but let’s not forget that AmmPower is headed by what looks to be a very solid and highly competent team ready to take on the challenges of the biggest energy transition in modern history.
We think this is where engineering meets finance, and where the brains of NASA meet the best brains in the business.
CEO Dr. Gary N. Benninger is an award-winning former NASA and Ford engineer. He’s also a former senior executive of the $40-billion Magna International Inc. automotive parts supplier, the third-largest in the world, as well as a former Captain in the U.S. Army with a Ph.D. in physics.
He’s joined by Dr. Lusia Moreno, a senior investment bank analyst, with an impressive track record and a doctorate in Materials Science and Mechanics from Imperial College London. Not to mention a lineup of other experienced team members.
The best part right now? This stock looks like it’s still flying under Wall Street’s radar.
Hydrogen may end up taking over heavy industries. Green ammonia may enable it to do that, and so much more. This could be far bigger than lithium.
That means AmmPower is developing technology in a sector on the verge of a massive opportunity. The technology it’s developing uses ammonia to safely store and ship hydrogen.
And over 120 ports around the world have already built or are in the process of building scalable ammonia handling facilities.The company is aiming to become a world leader in scalable proprietary production of Green Ammonia, and in our view, there couldn’t be a better time to harness the potential of this space.
And to us it’s not a “pure-play”—it’s a diversified company targeting three huge markets in an enormous energy-related opportunity, yet its market cap is only about $62 million. We think there’s a big potential for upside.
By. Paulie Jessop
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