Operations have begun at a 5,000 metric ton per year green ammonia plant in Ramme, Denmark, developed by Skovgaard Energy with Topsoe technology and renewable supply from Vestas, marking a shift toward dynamically operated power to ammonia systems that directly integrate intermittent wind and solar generation without dedicated hydrogen storage.
The plant combines 50 MW of new solar capacity with 12 MW of existing Vestas wind turbines, feeding power directly into electrolysis and the ammonia loop. Instead of smoothing power variability through large hydrogen buffers, the system adjusts operating conditions in real time to match renewable output. This approach targets one of the core cost drivers in green ammonia projects, where hydrogen storage and oversized electrolyzers often account for a significant share of capital expenditure. By eliminating storage, the partners are testing whether operational flexibility can substitute for physical buffers without undermining reliability or output quality.
From a production standpoint, the numbers are modest but strategically relevant. Annual output of 5,000 metric tons of green ammonia equates to an estimated 9,600 metric tons of avoided CO2 emissions compared with conventional fossil-based ammonia. While this scale is small relative to global ammonia demand, which exceeds 180 million tons per year, the project’s value lies in its system design rather than volume. It serves as a demonstration of how future power to X facilities might be integrated into grids with high renewable penetration, where curtailment and volatility are becoming structural features rather than exceptions.
The project has received DKK 81 million, roughly €11 million, in public funding through Denmark’s Energy Technology Development and Demonstration Program. That support underscores the policy rationale behind the plant: reducing system costs and improving utilization rates for renewable generation. For policymakers and developers alike, the question is whether dynamic operation can materially improve project economics at scale, particularly in markets where power prices fluctuate sharply and grid constraints are tightening.
Topsoe’s role centers on supplying the ammonia synthesis technology capable of handling variable hydrogen input, a nontrivial technical challenge given the steady state preferences of traditional Haber Bosch processes. The company argues that dynamic operation improves overall cost effectiveness by aligning production with real time renewable availability, but this claim will ultimately depend on long term performance data, maintenance requirements, and ammonia quality consistency under fluctuating loads. For industrial off takers, reliability and predictability remain as important as carbon intensity.
The Ramme plant also highlights ammonia’s strategic positioning within the broader hydrogen economy. Ammonia is increasingly viewed as both a hydrogen carrier and a direct fuel, particularly for shipping and certain industrial applications. Its compatibility with existing storage and transport infrastructure gives it an advantage over liquid hydrogen in early deployment phases. However, green ammonia’s competitiveness still hinges on lowering production costs, especially electricity input costs, which typically represent the majority of operating expenses.
By demonstrating a storage free, dynamically operated configuration, the Danish project directly addresses that cost challenge. If replicated at larger scales, such designs could reduce capital intensity and accelerate deployment timelines. At the same time, the absence of hydrogen storage shifts complexity into control systems and process engineering, raising questions about scalability and resilience during prolonged low renewable output periods.
As countries and industries look to ammonia for decarbonizing agriculture, shipping, and energy intensive manufacturing, projects like Ramme are likely to influence future design standards. Rather than focusing solely on capacity expansion, the emphasis is increasingly on system efficiency, grid compatibility, and total cost of ownership.
