Petronas, Itochu Plan Ammonia Study

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Malaysia's Petronas and trading house Itochu plan to study the feasibility of producing "blue" ammonia in the Canadian province of Alberta for export to Japan and other Asian markets. The study would look into producing 1 million tons/yr of ammonia made from natural gas extracted from a field owned by Petronas. Carbon emissions resulting from the process would be captured. Petronas Energy Canada CEO Mark Fitzgerald told local reporters that Canada is an ideal place to develop a blue ammonia project because of the country's extensive natural gas resources, its hydrogen strategy, and its willingness to support investment in carbon capture, utilization and storage (CCUS). Construction work would start in 2023, with production starting in 2027, if the companies give the project the go-ahead. The Japanese government has set a target of importing 3 million tons/yr of ammonia by 2030 and slashing the country's greenhouse emissions 46% by 2030. It recently allocated a 1% share to ammonia/hydrogen in Japan’s 2030 power generation mix (IOD Jul.21'21). Last year, Itochu joined other companies in launching a detailed study for a blue ammonia value chain based on Russian natural gas from fields in eastern Siberia (IOD Dec.29'20). Petronas produces gas in Canada through a joint venture in the North Montney Basin that also includes Indian Oil and Sinopec. The partners originally planned to use the gas for the Pacific NorthWest LNG project, which was canceled in 2017 (IOD Jul.26'17).

Carbon Capture (CCS), Low-Carbon Policy, Hydrogen
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