The use of low-carbon hydrogen and ammonia in fossil fuel plants could be key to ensure security in electricity supply while the world is moving toward cleaner energy sources, the International Energy Agency (IEA) said in a new report. The agency noted, however, that production costs of low-carbon hydrogen and ammonia fuels need to fall significantly in order to be competitive with other forms of energy, including fossil fuels. Low-carbon fuels can play an especially important role in countries or regions where the thermal fleet is young, or when the availability of low-carbon dispatchable resources is constrained, for example in East and Southeast Asia, the IEA said in its report. “By 2030 the cost of low-carbon hydrogen and ammonia for use as chemical feedstock becomes comparable to those of unabated production from fossil fuels. However, for use as a fuel, they are expected to remain significantly more expensive than […]

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