Techno-Economic Analysis of Low-Temperature Alkaline Ammonia Electrolysis Using a Gross Margin Model

Abstract

Ammonia has become a promising hydrogen carrier because of its high hydrogen density, established infrastructure, and easier liquefaction compared with hydrogen. Although thermal cracking is currently the main method for extracting hydrogen from ammonia, it is energy intensive and not ideal for decentralized or modular use. Ammonia electrolysis provides a low-temperature alternative but faces challenges that have not yet been fully understood. In this study, we perform a techno-economic analysis of alkaline ammonia electrolysis in membrane electrode assembly (MEA) cells with performance data validated through experiments and strategies involving dynamic operation. The analysis incorporates key techno-economic assumptions, including the capital recovery factor, consumer price index, Faradaic efficiency, ammonia utilization efficiency, ammonia transportation cost, balance-of-plant costs, and fixed operating and maintenance costs. A gross margin-based framework is employed to evaluate profitability under different market and operational conditions, including current density threshold and applied cell potential. The system can achieve positive gross margins in certain applications at the typical market prices. Sensitivity analysis shows that product and reactant prices, followed by applied cell potential and electricity price, have the greatest impact on the system profitability. Operational analysis also reveals a trade-off between the current density and working charge ratio that defines a practical performance window for maximizing economic returns. While this analysis confirms the feasibility of MEA-based ammonia electrolysis under specific conditions, additional research is necessary to address the remaining concerns about durability, ammonia crossover, and catalyst poisoning. The findings offer guidance for the future system design and performance goals.