Establishing a Lower-Emissions Fuel Ammonia Supply Chain from Australia to Japan

Source: www.gulfoilandgas.com 9/15/2022, Location: Not categorized

Woodside Energy Ltd. (“Woodside”), Japan Oil, Gas and Metals National Corporation (“JOGMEC”), Marubeni Corporation (“Marubeni”), Hokuriku Electric Power Company (“Hokuriku Electric”), The Kansai Electric Power Co., Inc. (“Kansai Electric”), Tohoku Electric Power Co., Inc. (“Tohoku Electric”), and Hokkaido Electric Power Co., Inc. (“Hokkaido Electric”) have signed a joint research agreement under which they will jointly conduct a feasibility study (Phase 2) on the establishment of a lower-emissions fuel ammonia supply chain from Australia to Japan (the “Project”).

Ammonia does not emit carbon dioxide (CO2) during combustion and is considered a promising next-generation lower-emission fuel for energy intensive thermal power plants and marine engines. Given existing proven technologies for the production, storage, and transportation of ammonia, it is expected to have early take-up as a lower-emission fuel.

In addition, the Sixth Strategic Energy Plan, published on October 22, 2021, states that ammonia-fueled power generation is one of the most promising options for decarbonizing power sources toward achieving carbon neutrality by 2050 since it does not emit CO2 during combustion and can be utilized in many existing power generation facilities such as boilers and denitration facilities without modification.

Last year, Woodside, JOGMEC, Marubeni, Hokuriku Electric, and Kansai Electric conducted a feasibility study on the entire supply chain, including the production of loweremissions ammonia in Australia from natural gas with CO2 abatement methods such as Carbon Capture and Storage (CCS), Carbon Capture and Utilisation (CCU) 1, and biosequestration; marine transportation to Japan; ammonia’s utilization as a fuel for power generation and marine use; and financing. In last year’s study, the parties sought to address the feasibility of establishing a supply chain in relation to economics and CO2 emission reduction.

As part of Phase 2 of the Project, seven parties, including Tohoku Electric and Hokkaido Electric as new participants, will conduct a further detailed feasibility study to inform the viability of establishing a lower-emissions fuel ammonia supply chain based on the results of the feasibility study conducted the previous year.

All parties participating in this project will continue the research already conducted in order to establish a lower-emissions fuel ammonia supply chain between Australia and Japan through collaboration, in an effort to assist the decarbonization of Australia and Japan.


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