## 7 Economic Assessment and Future Perspectives of Hydrogen and  
### Ammonia Production  
Green hydrogen and ammonia are promising renewable energy solutions that could revolutionize global energy markets and contribute significantly to reducing greenhouse gas emissions. However, making green ammonia economically on a large scale is still a challenge. The economic feasibility of green hydrogen and ammonia technologies is determined by several factors, including initial investment costs, operational expenses, and potential cost savings. The initial investment costs for green hydrogen and ammonia technologies can be high, and this can be a significant barrier to their widespread adoption. However, the operational expenses of these technologies are generally lower than those of traditional fossil fuel-based technologies. Potential cost savings can also be achieved through the use of green hydrogen and ammonia technologies. The cost of green hydrogen and ammonia is an important factor in determining their economic feasibility. According to one study, green hydrogen can be separated from ammonia to sell at about $1.50 / kg compared to traditional green hydrogen, which sells for up to $15/ kg [117]. The production of green ammonia from clean hydrogen is technically feasible and economically viable, and it could significantly reduce global natural gas demand [118]. However, making green ammonia economically on a large scale is still a challenge, and at current ammonia prices, green ammonia would not be profitable, even when considering a present-day optimistic hydrogen price [119]. The cost of producing hydrogen varies depends on the method used. Making hydrogen from natural gas costs about $1.50 per kilogram, while clean hydrogen costs about $5 per kilogram [120]. The Department of Energy launched a program called Hydrogen Shot, which aims to reduce the cost of clean hydrogen to $1 per kilogram in one decade [120] A techno-economic analysis of a green ammonia production plant in Chile and its subsequent transport to Japan shows that the production of ammonia using hydrogen by means of electrolysis (carried out with solar energy) is economically feasible. Using that ammonia with Kontak's technology, which Hydrofuel has previously acquired, allows for the production of green NH\({}_{3}\) using $0.02/kWh electricity for as low as $220 a ton, whereas fossil fuel-derived NH\({}_{3}\) is currently selling at $1500 to $2000 a ton [117]. Here are some details on the economic assessment and future perspectives of hydrogen production:  
* The cost of producing hydrogen from renewable electricity could fall 30% by 2030 as a result of declining costs of renewables and the increasing number of policies and projects around the world [121]. * Steam reforming of natural gas is currently the most efficient, low-cost method for hydrogen production [122]. * Hydrogen used for the production of electricity through electrolysis using renewable energy systems is a costlier proposition [123]. * Green hydrogen production systems have been analyzed for their economic feasibility. An optimization model was used to evaluate the levelized cost of green hydrogen (LCOH) for different case studies, including variations in capital expenditure (CAPEX), power purchase agreement (PPA), electrolyzer CAPEX, storage CAPEX, and total CAPEX. The results showed that the LCOH of green hydrogen can be competitive with fossil fuel-based hydrogen production under certain conditions [124]. * A systematic review of various hydrogen production methods found that hydrogen is a low- or zero-carbon energy source that is considered the most promising and potential energy carrier of the future. One study presented an economic assessment to evaluate cost-effectiveness based on different economic indicators, including sensitivity analysis and uncertainty analysis [125].