Friday, August 13, 2021

Hydrogen shipments the next focus for Petronas, Japanese partner

While the Petronas LNG plans for Port Edward didn't make it to the finish line, the Malaysian energy giant may yet find an energy supply to ship to asian markets out of the Prince Rupert gateway, with Hydrogen the latest project that Petronas is exploring for its Canadian holdings.

In early August Petronas announced that it was working with Japan's Itochu Corporation and a still to be revealed Calgary based pipeline provider towards a feasibility study for an Alberta facility that could produce up to 1 million tonnes of ammonia per year, while also capturing the carbon emissions that would come as part of the production process.

Ammonia is the most efficient method for the transportation of hydrogen, which in this scenario would use nitrogen from the Petronas natural gas operations to convert the hydrogen to ammonia. 

The process is already in development in other nations, considered as a source of energy that comes without a carbon footprint.

Should the feasibility study turn into a blue print for development, Petronas and its partner anticipate a start to construction in 2023 and the first production of ammonia by 2027.

Towards shipment to Asian markets, the Alberta government has noted that two proposed pipeline avenues to Prince Rupert are still fully permitted by regulators with the potential to repurpose the Prince Rupert Natural Gas Transmission line, or the WestCoast Connector Gas Transmission line for use to transport hydrogen to the West Coast before export.

Not identified as of yet, is what form of facility would be required on the North Coast towards loading the product onto vessels for transit to Asia.

No timeline towards the feasibility study has been released.

Some background on the August announcement can be reviewed below:

Petronas to build a hydrogen project in Alberta, for Japan exports
Petronas eyes $1.3 Billion project in Alberta to export hydrogen to Asia
Itochu's 'blue' ammonia from Canada to power Japan's green future
Japan's Itochu joins forces on Canadian ammonia output

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