# Ammonia, methanol and e-fuels: Impact and additionality

Reaching fertiliser, ships and planes where batteries cannot

Source page: https://www.materialinsights.org/energy/e_efuels_store/sg-impact/

What this tab covers The impact and additionality lens: what it displaces on the grid, who gains and who bears the burden along the supply chain, and what happens at end of life.

E-fuels decarbonise sectors batteries cannot reach, such as fertiliser, shipping and aviation; as a pure electricity store they waste most of the input power.

#### Grid decarbonisation versus fossil displacement
Mixed

The strongest case is replacing fossil ammonia, about 176 Mt a year in 2018 and roughly 1.8% of global CO2, and fossil jet fuel. In power, JERA ran a 1 GW coal unit in Japan on 20% ammonia for about two months in 2024 with no rise in nitrogen oxides, and plans at least 50% co-firing by 2035; critics see this as extending coal plant life. IRENA estimates renewable methanol can cut life-cycle emissions by 65-95% compared with fossil fuels.^[1](https://royalsociety.org/-/media/policy/projects/green-ammonia/green-ammonia-policy-briefing.pdf)^[4](https://www.irena.org/publications/2021/Jan/Innovation-Outlook-Renewable-Methanol)^[9](https://ammoniaenergy.org/articles/jera-concludes-successful-co-firing-trial-at-hekinan)
 Global ammonia output and CO2 about 176 Mt/yr; about 1.8% of global CO2 (2018)^[1](https://royalsociety.org/-/media/policy/projects/green-ammonia/green-ammonia-policy-briefing.pdf) Hekinan co-firing trial 20% ammonia in 1 GW unit (2024)^[9](https://ammoniaenergy.org/articles/jera-concludes-successful-co-firing-trial-at-hekinan) Renewable methanol emission cut 65-95% (life cycle)^[4](https://www.irena.org/publications/2021/Jan/Innovation-Outlook-Renewable-Methanol)

#### Just transition and local community impact
Mixed

India's auctions place green ammonia supply near fertiliser plants, which could cut import dependence and bring rural renewable jobs, but they need large land and water use for solar, wind and electrolysis. Producing e-fuels for export risks a pattern where host regions bear land and water costs while value is captured elsewhere. CO2 accounting rules between producing and consuming countries are still unclear, as Japan's e-methane plans show.^[2](https://www.spglobal.com/energy/en/news-research/latest-news/energy-transition/080726-indias-seci-proposes-1-mil-mtyear-new-renewable-ammonia-auctions-official)^[3](https://www.pv-magazine-india.com/2025/08/05/secis-latest-auction-yields-green-ammonia-price-of-inr-51-8-per-kg/)^[8](https://argusmedia.com/en/news-and-insights/latest-market-news/2520845-viewpoint-co2-counting-key-to-japan-s-e-methane-plan)

#### Circular economy and end of life
Mixed

Fuels are consumed, so there is no end-of-life waste beyond plant decommissioning. E-methane and e-kerosene re-release the captured carbon when burned; the climate benefit depends on the CO2 source and on avoiding double counting. Fugitive ammonia that reaches soil can form nitrous oxide.^[1](https://royalsociety.org/-/media/policy/projects/green-ammonia/green-ammonia-policy-briefing.pdf)^[8](https://argusmedia.com/en/news-and-insights/latest-market-news/2520845-viewpoint-co2-counting-key-to-japan-s-e-methane-plan)

#### Sources

1. [Ammonia: zero-carbon fertiliser, fuel and energy store (policy briefing)](https://royalsociety.org/-/media/policy/projects/green-ammonia/green-ammonia-policy-briefing.pdf) The Royal Society, 2020
2. [India's SECI proposes 1 mil mt/year new renewable ammonia auctions](https://www.spglobal.com/energy/en/news-research/latest-news/energy-transition/080726-indias-seci-proposes-1-mil-mtyear-new-renewable-ammonia-auctions-official) S&P Global Commodity Insights, 2026
3. [SECI's latest auction yields green ammonia price of INR 51.8 per kg](https://www.pv-magazine-india.com/2025/08/05/secis-latest-auction-yields-green-ammonia-price-of-inr-51-8-per-kg/) pv magazine India, 2025
4. [Innovation Outlook: Renewable Methanol](https://www.irena.org/publications/2021/Jan/Innovation-Outlook-Renewable-Methanol) IRENA and Methanol Institute, 2021
5. [Viewpoint: CO2 counting key to Japan's e-methane plan](https://argusmedia.com/en/news-and-insights/latest-market-news/2520845-viewpoint-co2-counting-key-to-japan-s-e-methane-plan) Argus Media, 2023
6. [JERA concludes successful co-firing trial at Hekinan](https://ammoniaenergy.org/articles/jera-concludes-successful-co-firing-trial-at-hekinan) Ammonia Energy Association, 2024

## Other sections

- [Summary](https://www.materialinsights.org/energy/e_efuels_store/index.md)
- [Overview](https://www.materialinsights.org/energy/e_efuels_store/overview/index.md)
- [Correlation](https://www.materialinsights.org/energy/e_efuels_store/correlation/index.md)
- [Science and technology](https://www.materialinsights.org/energy/e_efuels_store/sg-sci/index.md)
- [Engineering and performance](https://www.materialinsights.org/energy/e_efuels_store/sg-eng/index.md)
- [Economics](https://www.materialinsights.org/energy/e_efuels_store/sg-econ/index.md)
- [What to track](https://www.materialinsights.org/energy/e_efuels_store/tracking/index.md)
- [Relationships](https://www.materialinsights.org/energy/e_efuels_store/links/index.md)