Phil Hunter, COO, We Are NiumGemserv helped us to fully model the Levelised Cost of Ammonia enabling us to speak confidently about the costs for Nium's novel Ammonia process based on different Hydrogen prices, potential subsidies and even factoring the UK societal carbon costs and UK ETS pricing in order to account for averted carbon. Being able to outsource to a knowledgeable team who had expertise outside our inhouse capabilities was invaluable. The Gemserv team were able to think outside of the normal constraints and also ask hard questions to ensure the output was to a quality standard.
THE CHALLENGE
We Are Nium is a start-up technology developer in the ammonia synthesis space. They are currently developing a process to facilitate the reaction of ammonia production at a lower temperature and pressure. The units can also be made at a smaller scale.
They recently received funding for their pilot plant development but were already looking ahead to further investment. One problem they faced was that they lacked a strong understanding of their levelised cost and project financials and those of traditional systems. They were not able to give concrete answers on their systems costs and financials. These questions would need to be answered to bring new investors and clients on board as the company progressed.
THE SOLUTION
Gemserv were approached by We Are Nium to develop an Excel-based Levelised Cost of Hydrogen (LCoH) & Levelised Cost of Ammonia (LCoA) model from scratch for the novel system. Our hydrogen consultants supported We Are Nium by:
- Finding and testing assumptions for a novel system.
- Creating a levelised cost and financial model.
- Making recommendations on LCOH & LCOA reduction.
- Providing a summary report.
THE IMPACT
The model and report developed by Gemserv helped We Are Nium by:
- Shaping their understanding of the financial performance and competitiveness of their system.
- Displaying the data in a simple and meaningful way.
- Supporting the development of their value proposition and messaging.
- Assisting the management team in planning future strategy and investments.
