Pembina Pipeline Corporation is pleased to announce the signing of a Memorandum of Agreement (“MOA”) with Marubeni Corporation (“Marubeni”), to progress an end-to-end, low-carbon ammonia supply chain from Western Canada to Japan and other Asian markets (the “Project”). The Project includes the joint development of a world-scale, low-carbon hydrogen and ammonia production facility (the “Facility”) to be sited on Pembina-owned lands adjacent to its Redwater Complex in the Alberta Industrial Heartland near Fort Saskatchewan, Alberta.
“This project represents a transformative opportunity that is highly aligned with Pembina’s strategic priorities, including supporting global decarbonization efforts by exporting low-carbon energy derived from natural gas responsibly produced in Western Canada,” said Stu Taylor, Pembina’s Senior Vice President & Corporate Development Officer. “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. Marubeni has deep expertise in areas critical to the success of the Project and we are delighted to be working with them to facilitate the global movement towards greater use of low-carbon ammonia and to support Japan’s decarbonization strategy.”
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Demand for low-carbon ammonia in Japan and other Asian markets is expected to grow substantially given its efficiency as a carrier of hydrogen and use as a low-carbon fuel source. Ammonia is one of the most widely produced synthetical chemicals in the world today and the production technology and handling are well understood and established. Alberta is the leading region in Canada for existing ammonia production and the Project is another opportunity to support development of a hydrogen and low-carbon economy.
“The Project will leverage access to existing infrastructure and benefit from Canada’s abundant natural gas supply, advantaged West Coast shipping access to Asia, and growing carbon capture and sequestration industry. Pembina has a long history and strong reputation as a leading Canadian energy infrastructure provider and we are honoured to be working together as partners in the establishment of a low-carbon fuel supply chain from Canada to Japan,” said Yoshiaki Yokota, Marubeni’s Chief Executive Officer, Energy & Infrastructure Solution Group.
SOURCE: Businesswire