Design and Perform Techno-Economic Analysis of The Conceptual Ammonia Transport Network in the Humber Cluster

Abstract

This project presents the conceptual design and techno-economic analysis of an ammonia-based hydrogen transport network for the Humber Cluster, a key industrial region in the UK. The study focuses on optimising the supply chain to meet the hydrogen demands of major industrial facilities—VPI Immingham, Phillips 66 Humber Refinery, British Steel Scunthorpe, and Keadby Power Station—by leveraging ammonia as a hydrogen carrier. A combination of theoretical calculations and simulation models was employed to estimate hydrogen demand, pipeline design parameters, and ammonia transport requirements. The pipeline network, spanning 43.5 km, features a dynamic design with varying diameters to accommodate reduced flow rates across branches, ensuring efficient transport and minimal energy losses. Pressure drops calculations using the Darcy-Weisbach equation were validated against simulation results from Aspen HYSYS, which utilised the Beggs and Brill method. The simulations revealed a total pressure drop of 0.44 bar—significantly lower than the initial theoretical estimate of 0.72 bar—resulting in reduced pump power requirements, enhancing the network’s overall efficiency. To ensure continuous hydrogen supply, high-efficiency ammonia cracking units are integrated at each site, achieving a conversion efficiency of 95%. Environmental impact assessments demonstrate that using Siemens Gamesa's renewable energy for pumping and cracking operations could result in near-zero CO₂ emissions, aligning the project with the UK’s net-zero targets and reducing its carbon footprint. A comprehensive financial analysis indicates a total capital expenditure of £1.3443 billion and annual operational costs of £593.59 million, with an estimated annual revenue of £954.7 million from hydrogen production. The calculated payback period is approximately 3.72 years, with a return on investment (ROI) of 26.86%. Sensitivity analyses confirmed the project's financial resilience under varying market conditions, emphasising renewable energy's economic and environmental benefits, which could save approximately £71.89 million annually in operational costs. This project demonstrates the feasibility and strategic advantages of an ammonia-based hydrogen transport network within the Humber Cluster, providing a scalable and cost-effective model for future low-carbon industrial initiatives globally.