Japanese trading and investment conglomerate Marubeni Corp. has partnered with Canada-based Pembina Pipeline Corp. to develop a low-carbon ammonia facility in Alberta.
The companies have signed a memorandum of agreement, aiming to establish a low-carbon ammonia supply chain from Western Canada to Japan and other Asian markets, Pembina said May 30.
Located near Pembina’s Redwater Complex, the facility will develop ammonia from blue hydrogen. The facility will be designed to produce up to 185 kilotonnes per annum, which will be converted to about 1 million tonnes of ammonia per year, according to a news release. Plans are to transport the ammonia by rail to Canada’s West Coast for shipping to Japan and other Asian markets.
Marubeni is expected to contract offtake from the facility, Pembina said.
“The project is an example of Pembina’s ability to leverage its existing asset base and core competencies to develop new integrated value chains, including carbon capture, utilization and storage (CCUS) and low-carbon energy such as hydrogen, and ammonia as a hydrogen carrier and fuel source,” Stu Taylor, senior vice president and corporate development officer for Pembina, said in a news release.
The agreement focuses on completing preliminary FEED by early 2024, engaging with stakeholders and working on commercial activities. Initial feasibility studies have been completed, Pembina said.
The company said the project could also serve as an anchor development for a low-carbon complex it envisions building on undeveloped land in the Alberta Industrial Heartland.
Recommended Reading
CGG to Change Name to Viridien
2024-05-17 - The company’s new ticker symbol will be “VIRI” and listed on Euronext Paris, effective May 21.
Sector’s Appetite for Capital Remains Amid Consolidation Frenzy, Panelists Say
2024-05-17 - There’s still an appetite for capital in the oil and gas sector—companies just need to think creatively to find it, a number of panelists said during SUPER DUG in Fort Worth, Texas.
SilverBow Resets Shareholder Meeting After $2.1B Crescent Deal
2024-05-16 - SilverBow Resources said it will adjourn its May 21 shareholders’ meeting until May 29 following Crescent Energy’s agreement to buy the Eagle Ford operator.
Blue Racer Midstream Prices Senior Notes Offering
2024-05-15 - Net proceeds from the sale of senior notes will be used to pay off debt and other general corporate purposes.
Petrobras CEO Prates to Step Down
2024-05-15 - Brazil’s President Luiz Inácio Lula da Silva has requested that Petrobras CEO Jean Paul Prates resign following a dispute over dividend payments.