Optimal Sizing and Pricing of Renewable Power to Ammonia Systems Considering the Limited Flexibility of Ammonia Synthesis

Abstract: Converting renewable energy into ammonia has been recognized as a promising way to realize ``green hydrogen substitution" in the chemical industry. However, renewable power to ammonia (RePtA) requires an essential investment in facilities to provide a buffer against the strong volatility of renewable energy and the limited flexibility of ammonia synthesis, which involves the three main stakeholders, namely, power, hydrogen, and ammonia. Therefore, the sizing and pricing of RePtA play a core role in balancing the interest demands of investors. This paper proposes an optimal sizing and pricing method for RePtA system planning. First, power to ammonia (P2A) is modeled as a flexible load, especially considering the limited flexibility of ammonia synthesis, which has been verified using real dynamic regulation data. Second, the multi-investor economic (MIE) model is established considering both external and internal trading modes. Then, a two-stage decomposed sizing and pricing method is proposed to solve the problem caused by the strong coupling of planning, operation, and trading, and information gap decision theory (IGDT) method is utilized to handle the uncertainty of renewable generation. Finally, real data from a real-life system in Inner Mongolia are utilized to verify the proposed approach. The results show that the system proposed has a yield of 8.15%.