Earlier quoted context omitted.
> Replacing the hydrogen source at similar scales with electrolysis is plausible with base load power generation. There is no need to tie this to base load power generation. In fact, quite the opposite: A lot of the electrolysis projects and the funding happening right now is targetted at using electrolysis as a compensation for fluctuating renewables. This makes sense: We have cheap, green electricity, however havin…
This works because electrolysis equipment is cheap, so shutting it down half time barely increases total cost of ownership compared to the input electricity.
But overall it's going to be the cheapest way to make hydrogen and then ammonia very soon. And the market has already seen that inevitable future, lots of right-wing Australian mining billionaires have jumped into the market hard for example.
The main saving is avoided carbon, which isn't priced in everywhere. But the sheer scale of ammonia production means it's easy to gradually introduce this as long as you spread the initial upfron cost across all the users (which is basically everyone).
It's a very mutually beneficial arrangement for renewables so the two things reinforce each other strongly and I think it'll be one of those things that moves faster than they expect.