New UK ammonia coalition pushes for policy recognition ahead of new hydrogen strategy

The UK Ammonia Alliance (UKAA) was launched on Tuesday (21 October) by the likes of hydrogen and ammonia tech firm AFC Energy, industrial gas major Air Products, oil and gas transporter Exolum, Japan’s Mitsubishi Heavy Industries, and renewable energy generator Statkraft.

As a first step, the group plans to launch a policy paper in Parliament next month with key recommendations to support clean ammonia.

AFC Energy’s Chief Technology Officer, Dr Mike Rendall, has been appointed Chair of the group, and said ammonia represented a “major opportunity” for the UK to speed up its energy transition while delivering “industrial growth.”

While the UKAA’s policy asks are yet to be revealed, the UK remains behind other regions in its support for the hydrogen and nitrogen compound.

The group said, as a widely traded commodity, low-carbon ammonia could support the decarbonisation of existing use cases as well as hydrogen transport and storage, power generation, and clean fuels.

However, under the country’s Hydrogen Production Business Model, only electrolysis, steam methane reforming with CCS, and methane pyrolysis are currently recognised as clean hydrogen production pathways that can secure subsidies.

This means even imported green hydrogen from low-cost production regions cannot qualify, reflecting the government’s focus on “home-grown” energy.

In June, Air Products paused a major green hydrogen import project in the Port of Immingham, citing a “lack of commitment” by ministers, after resetting export plans from its 2.2GW Neom green hydrogen plant in Saudi Arabia.

The Alliance’s  launch comes as the UK hydrogen sector awaits a promised update to its national hydrogen strategy, billed as a pragmatic reset from the 2021 blueprint, which many argued had focused too narrowly on production.

The UKAA said it aims to work with industry and government to support the policies, investment, and infrastructure needed to scale low-carbon ammonia.

Other founding members include Blended Products, Clean Air Power, Green Cat Hydrogen, Hycap, Industrial Chemicals Limited, and N-Gen Energy.

Trevor Brown, Executive Director of the international trade group, the Ammonia Energy Association, said, “The UK has world-class R&D capabilities and industrial expertise, and it offers a strategic location as an import/export hub.”