TOKYO: On Thursday, Japan’s Inpex Corp, JERA, and Japan Oil, Gas, and Metals National Corp (JOGMEC) announced that they had reached an agreement with Abu Dhabi National Oil Company (ADNOC) to investigate the viability of producing ammonia in the UAE (UAE). According to a release, Inpex, Japan’s largest oil and gas business, JERA, Japan’s largest power generator, and state-run JOGMEC will collaborate with ADNOC to investigate the financial feasibility of producing and delivering ammonia to Japan.
Ammonia, like hydrogen, is used for fertilizer and industrial products, but it is also seen as a viable future energy source. When it is burned, it does not emit carbon dioxide, but when it is manufactured with fossil fuels, it does. The four businesses propose to investigate the viability of creating ammonia from natural gas-derived hydrogen with a lower carbon footprint, with the majority of CO2 generated from ammonia production being captured and used in improved oil recovery operations at Abu Dhabi onshore oil fields. According to a JERA official, they want to finish the collaborative study by November. Japan has set a goal to increase its ammonia fuel demand to 3 million tonnes per year by 2030, up from zero presently, and to establish a new ammonia fuel supply chain in order to reduce CO2 emissions and combat climate change.
(Yuka Obayashi contributed reporting, and Mark Potter edited the piece.)/n
