Japan’s Mitsui eyes ammonia supply chain with Australia

: Electricity, Fertilizers, Hydrogen, Natural gas, Oil products
21/10/06

Japanese trading house Mitsui is planning to build a fuel-use clean ammonia supply chain in Australia, as well as in the Asian region, including Japan.

Mitsui's wholly-owned subsidiary Mitsui E&P Australia (Mepau) in August signed an agreement with Australian conglomerate Wesfarmers to jointly explore clean ammonia production, utilising Wesfarmers' ammonia output and sales knowledge. Mepau will also co-operate with Japan's state-controlled energy agency Jogmec on carbon capture and storage (CCS) technology for the project.

Mitsui and Wesfarmers will produce clean ammonia from hydrogen generated from natural gas in the onshore Waitsia gas field in Western Australia (WA), with carbon dioxide (CO2) emitted during the output process to be stored in Mitsui's depleted gas fields in Perth. There are possible fields for the CCS, but Mitsui did not disclose any other details.

The companies are targeting to start clean ammonia production in 2028, somewhere near the Waitsia gas field. Waitsia is operated by Mitsui, which jointly owns the project with Australian independent Beach Energy.

Clean ammonia that is shipped to Japan is initially expected to be used at coal- and gas-fired power plants as a generating fuel to contribute to Japan's CO2 emissions-reduction goal. Mitsui is expecting a rise in demand for clean ammonia for ammonia-fired power generation and for ammonia as a hydrogen carrier to ship hydrogen to hydrogen-fired power plants in future.

Mitsui is also considering supplying clean ammonia to the shipping industry as a marine fuel.

By Maiko Nakashima

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Mexico central bank cuts target rate to 7pc

25/12/19

Mexico central bank cuts target rate to 7pc

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25/12/19

Australia needs electricity carbon policy: Commission

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Viewpoint: Bitumen markets eye pockets of demand

25/12/19

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25/12/19

W Australia's gas surplus outlook strengthens: Aemo

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