Q&A - Hyamtec: The path to cost-effective hydrogen

As the global push for renewable energy intensifies, ammonia emerges as a critical player in the hydrogen economy. Its ability to act as an efficient hydrogen carrier makes it a practical solution for industries grappling with the challenges of storage, transport, and cost-effective hydrogen production.

Recognising this potential, inspiratia speaks with Mike Rendall, Managing Director of Hyamtec, to explore how the company is leveraging ammonia-cracking technology to address these challenges.

Launched in September 2024 as a subsidiary of AFC Energy, Hyamtec focuses on ammonia-cracking technology, a method that separates ammonia into hydrogen and nitrogen. While the process has been around for years, Hyamtec has taken a fresh approach by designing modular and efficient systems to make hydrogen more accessible and practical for industries.

In this conversation, Rendall delves into the opportunities and challenges of hydrogen production, explains what makes Hyamtec's technology stand out, and shares the company's vision to decarbonise industries.

He points out the scale of the opportunity, noting: "Hyamtec is focused on fast-tracking the decarbonisation of industry through ammonia and our ammonia cracking technologies. With over £40 billion (€47.6bn $48.6bn) spent per annum on natural gas by industrial users in the UK alone, the global opportunity to displace fossil fuels in industry with ammonia is immense."

Can you give us an overview of Hyamtec and its mission?

Hyamtec focuses on commercialising our ammonia-cracking technology for low-cost hydrogen generation for industrial applications. Our journey began over a decade ago, exploring ammonia cracking to pair with fuel cell systems. Early on, we built systems combining ammonia crackers and fuel cells for telecom applications, particularly for power generation in off-grid areas in Africa.

A few years ago, we refined our approach, initially targeting marine applications where ammonia-powered fuel cells could have a major impact. However, we realised that there was also a demand for hydrogen for other applications beyond the need for electricity generated from it. This led us to repurpose our ammonia-cracking technology as a standalone hydrogen producer. Our cracker system produces pure fuel-cell grade hydrogen with low energy requirements, making it highly efficient and cost-effective.

One of these significant applications focused on large industrial energy consumers, building demonstrators, developing systems, and now moving into commercial trials. These trials involve partners needing hydrogen to decarbonise their operations.

What makes your system unique?

Our system's cost-effectiveness sets it apart. Unlike other hydrogen production methods, we don't heavily rely on electricity. Instead, we harness the energy within ammonia, splitting it into hydrogen and nitrogen while releasing nitrogen back into the atmosphere.

This efficiency and simplicity makes our system ideal for industries needing large amounts of hydrogen without paying premium prices for truck-delivered hydrogen. Our technology supports industrial decarbonisation by making hydrogen affordable and accessible, as well as making it on-site and on-demand.

Looking ahead, we aim to scale this technology for these industrial users, particularly sectors consuming vast quantities of hydrogen. We're transitioning from development to real-world applications, with significant potential for industry and the resulting reduction in emissions to the environment.

The hydrogen sector is facing challenges. How does your industrial focus position you in this market?

It's true that large-scale hydrogen projects, especially those involving electrolysis, face hurdles due to high energy demands and uncertain off-takers.

Our target industries differ. Many rely on natural gas pipelines and seek ways to decarbonise without overhauling infrastructure. They see ammonia as a more viable option than electrolytic hydrogen, primarily due to its energy density and the ability to move hydrogen in higher quantities and with conventional transport.

Our system produces hydrogen at about one-tenth the cost of other methods. Ammonia logistics also lead to lower costs since it's easier to transport in bulk than hydrogen. From ammonia, we produce significantly more hydrogen per delivery, keeping costs competitive for industrial users.

What about the scalability of ammonia crackers?

Ammonia cracking is scalable, and our technology is modular.

We design containerised systems that can scale from kilowatt-level applications to megawatt-scale industrial needs. This step-by-step approach minimises risk, allowing industries to start small - like decarbonising one burner at a glass factory and expand as needed.

Additionally, ammonia infrastructure is already widely available, unlike heavy power-consuming electrolysers, which are likely to require grid upgrades. Our technology offers a straightforward, cost-effective solution with minimal risk.

What makes your ammonia cracker next-generation?

Traditional ammonia crackers are repurposed steam methane reformers, which are inefficient and not ideally optimised for ammonia cracking. We took a different approach, designing smaller, more efficient, compact modular systems.

Our cracker functions as a high-tech heat exchanger, using efficient heat generation to break ammonia into hydrogen and nitrogen gas streams. We optimised for energy efficiency and integrated multiple heating options, including electrical, combustion, and external heat recovery, boosting versatility and efficiency.

How does your technology work in terms of transportation and setup?

We currently manufacture crackers in the UK due to core patents and operational convenience. However, as demand and scale grow, we would consider to localise manufacturing.

Our compact crackers, about one meter in length, are easy to ship and can scale to meet demand, such as producing several tonnes of hydrogen per day. For larger projects, we envision manufacturing core elements in the UK and partnering with local teams for assembly.

Who are your primary customers, and how is this technology applied across industries?

We target three key markets:

Industrial gas displacement:
Industries like cement and asphalt use significant natural gas. Our technology enables them to initially displace 20–30% of their gas use with hydrogen and gradually transition further, using green ammonia to achieve net-zero goals.

Engine applications:
We convert heavy-duty engines, such as those in mining trucks or large grid-connected generator sets, to run on hydrogen derived from ammonia. This is ideal for operations requiring high power where electrification isn't feasible.

Hydrogen refuelling stations:
Traditional hydrogen distribution is expensive. Our technology enables on-demand hydrogen production from ammonia, with one ammonia truckload replacing 14–15 hydrogen truckloads.

What about costs?

Our systems compete with other hydrogen production methods, not natural gas. Currently, the levelised cost of hydrogen from ammonia is typically 10% of the cost of the gas supplied by industrial gas providers, meaning that we are able to commercially make hydrogen at costs that are competitive with typical carbon-based fuels without the need for government subsidies.

Ammonia prices, impacted by geopolitical factors, are stabilising. As they normalise, our technology will become even more competitive. With scaling, we expect to surpass hydrogen price targets set by governments within five years.

Are there regulatory or market challenges?

Ammonia's role as an energy carrier is still emerging, and public perception remains cautious due to the lack of knowledge about ammonia as a viable hydrogen carrier. However, it's the second-most globally transported chemical and manageable with proper handling, much like hydrogen or natural gas.