Japan, Russia look at creating blue ammonia value chain

Market: Crude oil, Electricity, Emissions, Fertilizers, Hydrogen, Natural gas
28/12/20

Japanese firms, backed by state-owned energy agency Jogmec, plan to study the possibility of producing and shipping blue ammonia produced in Russia's Siberia for co-firing at coal-fired power generation plants in Japan.

Jogmec, Japanese trader Itochu and plant engineering firm Toyo Engineering have agreed with Russian oil producer Irkutsk Oil (IOC) to conduct a joint feasibility study on the development of a blue ammonia value chain. Itochu and Toyo Engineering will be initially commissioned to study the feasibility of producing ammonia from hydrogen produced by IOC in eastern Siberia and transporting it from Russia to Japan.

The partners are considering studying the establishment of an entire value chain for mass-produced blue ammonia using natural gas produced by IOC to ensure stable supplies to Japan as the next step. Carbon dioxide (CO2) generated and captured from the ammonia production process is planned to be injected into eastern Siberian oil fields for enhanced oil recovery.

The co-operation enables the four parties to bring together technologies and expertise to reduce greenhouse gas (GHG) emissions and cope with global warming. Jogmec and Itochu have partnered with IOC at the Ichyodinskoye oil field in eastern Siberia.

Itochu said it is aiming to establish efficient production and transportation of blue ammonia and to achieve stable supplies to the Japanese market. The trader is also participating in projects to develop supply infrastructure to use ammonia as a marine fuel in Japan and Singapore.

The project can provide a new option to boost Japan and Russia's energy security through establishing a fuel value chain, Toyo Engineering said. The firm has been in business with Russia for more than 50 years and has participated in about 80 ammonia plant construction projects, as well as consulting, engineering and construction of oil and gas production facilities and enhanced oil recovery units.

Jogmec now has a strategy to reinforce its technology and financial support for carbon, capture and storage (CCS) projects as part of Tokyo's commitment to achieve a decarbonised society by 2050. It is also seeking to explore ammonia business opportunities with domestic and overseas firms to create hydrocarbon opportunities.

The government of premier Yoshihide Suga is targeting to boost Japan's use of hydrogen and ammonia as part of a 2050 climate goal to achieve net-zero greenhouse gas emissions.

Japan imported the world's first shipment of blue ammonia from Saudi Arabia earlier this year under a joint project between state-controlled Saudi Aramco, its petrochemicals affiliate Sabic and Japanese energy think-tank IEEJ.

By Rieko Suda

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