Tag Archives: Ammonia

Peak Oil

The Cost of Farming

2 Comments

Richard Ha writes:

Now that the GMO discussion has stabilized, let’s move forward.

There is a big picture here that is not being discussed. In the coming weeks, I will be writing about various input costs of farming, because as costs go up we need to be planning and preparing. 

Today I want to discuss what farming looks like from a farmer’s point of view. 

Farmers were shocked back in 2008 when the cost of nitrogen fertilizer spiked. Ammonia is a key component for making nitrogen fertilizer, as well as plastics and pesticides, and the cost of ammonia is highly correlated with the price of natural gas.

Impact of Rising Natural Gas Prices on U.S. Ammonia Supply

Natural gas is the primary raw material used to produce ammonia. Approximately 33 million British thermal units (mm Btu) of natural gas are needed to produce 1 ton of ammonia. Natural gas accounts for 72-85 percent of the ammonia production cost, depending on the size of the ammonia plant and the price of ammonia (TFI (a)). Ammonia prices were weakly correlated with natural gas prices before 2000, but became strongly correlated after 2000….  Read the rest

Natural gas had been cheap, but its cost started rising and, in 2008, it reached $12/thousand cubic feet (mcf). I addressed the State Farm Bureau convention and told the farmers it was not their fault that fertilizer and input costs had risen so much and that their costs were suddenly so high.

After 2008, the price of natural gas declined dramatically because of shale oil and shale gas production. It dropped below $3/mcf. Right now it’s slightly higher, a little over $4/mcf,  because of winter home heating. 

So we’ve seen the effects of high natural gas prices on farming input before, back in 2008, and we know it will go up again.

What exactly is the outlook for the price of natural gas and therefore fertilizer, plastics and pesticide costs?

On the mainland, thousands of wells produce natural gas. Keep in mind, though, that the average gas well produces 90 percent of its total production – 90 percent of everything it’s going to ever produce – in its first five years. In contrast, Saudi Arabia oil fields have lasted for more than 50 years.

It’s only common sense that natural gas prices are going to rise, and therefore our farming input costs will go even higher. The only question is how fast and how high?

Coming up I’ll write about what people are predicting, as far as when prices will go up and how high they will go.

Science, Sustainability

Fertilizer from Local Resources

Richard Ha writes:

It’s Father’s Day, and I’m thinking about my Pop and what he always told me: “Find three solutions for every problem, and then find one more just in case.”

I’m thinking, on this Father’s Day, that it’s appropriate to talk about the “one more solution.”

Excess or “curtailed” electricity is thrown away. What if we used curtailed electricity to make fertilizer?

Three years ago, my farmer friend Steve Gruhne in Iowa was talking about the ammonia and nitrogen cycle.

Nitrogen is a building block of protein. We can take the throw-away electricity and run it through water. Hydrogen and oxygen will bubble up. Take the hydrogen and combine it with nitrogen in the air and you get ammonia fertilizer. Just think – nitrogen fertilizer made from local resources!

Pop said there are a thousand reasons why no can. We are looking for the one reason why CAN!

Happy Fathers Day, Guys.

Biofuel, Geothermal, Renewable Energy Sources

Why We Need Geothermal

1 Comment

I just returned from Detroit, where I attended the NH3 conference.

NH3 is ammonia, and it’s “the only realistic energy solution that makes sense,” according to Matt Simmons of the National Petroleum Council, the Council on Foreign Relations and founder of the Ocean Energy Institute.

Guy Toyama, chair of the Hawaii County Energy Commission; Mitch Ewan, of the Hawaii Natural Energy Institute at UH Manoa; Roald Marth, venture capitalist, and I were the others from Hawai‘i who attended. Guy gave a talk and pretty much convinced them to hold next year’s conference on the Big Island.

What I learned:

• NH3 is more practical than H2, because there are three Hs in its molecule, rather than two. Therefore, it’s a third more energy dense when transporting. And it can be moved around through the propane infrastructure at relatively low temperature and pressure.

I am a farmer and I like things that are practical. NH3 is the practical person’s hydrogen. H2 is very impractical.

• With a little help, NH3 can be used to run internal combustion engines without much modification. The largest company in the world that converts engines for propane use is now working on commercially modifying engines so that they can use NH3. They focus on fleet vehicles, like BlueBird school buses, etc.

I like this company’s approach. They take care of everything so it is simple for the operator.

• Rather than using hydrocarbons to make NH3, as is done now, we can use electricity for hydrolysis to separate out the hydrogen and oxygen from plain water; then take “N” (nitrogen) from the air to make NH3. Cheap electricity from “off peak” geothermal power would make this cost-competitive as oil prices rise. Considering the recent Lloyd’s of London white paper telling its business clients to be prepared for $200/barrel oil by 2013, it is prudent to be self-reliant.

So the ingredients for NH3 are:

  • Geothermal for cheap electricity
  • Water for the hydrogen, and
  • Air for the nitrogen.

We have all that in abundant supply on the Big Island.

NH3 does not burn well by itself, so it can be used to stretch hydrocarbons to hedge our bets. This conference was interesting because folks reported on using oxygen to strengthen the flame. It just so happens that oxygen is produced, along with hydrogen, during the hydrolysis process.

If we do more geothermal, we can get cheap electricity for all us. And as the NH3 technology develops, we put ourselves and future generations in a position to win.

NH3 is simply ammonia and its safety issues are easily overcome. Catalytic converters can take care of greenhouse gases. Folks are working on making the combustion more efficient.

Guy Toyama said he believes we should be burning H2 in the engine and using NH3 as the H2 carrier. That’s why it it’s important to have an ammonia cracker, like Shaun Grannell was demonstrating outside. That engine was running on pure H2. The pipe on the outside stripped the NH3 to H2 + NO, NO2. Hydrogen flame speed is quicker, so you can more easily convert an Internal Combustion Engine to run on H2.

Cracker

This is a small engine with the H2 cracker wrapped in tin foil. It ran on straight ammonia.

It was amazing to see. I felt like I was witnessing a historical event.

As we all know, the folks on the lowest rungs of the economic ladder are the ones who will get their lights turned off first, and too often they will be Hawaiians. Geothermal can help to prevent this from happening.

In the uncertain future ahead, we need to take care of each other. Not, No Can. CAN!

Can you folks help us advocate for geothermal?