The pair will jointly develop a low-carbon ammonia supply chain from Western Canada to Japan. Hydrogen & ammonia production plants will be constructed next to Pembina’s existing Redwater Fractionation facility, which is located in Canada’s largest industrial park – the Alberta Industrial Heartland near Fort Saskatchewan, Alberta. Carbon emissions from hydrogen production will be captured and sequestered or “effectively utilized”. This will feed ammonia production, which will then be transported via rail to Canada’s west coast before being shipped to Japan and other Asian markets. Pre-FEED work is expected to be completed in 2024, with FID in 2025.
The Project will benefit from Canada’s abundant natural gas supply, with the advantage of west coast shipping access to Asia, and a growing carbon capture and sequestration industry. The establishment of a large-scale hydrogen and ammonia supply chain will also importantly support the decarbonization efforts of both Japan and Canada.Yoshiaki Yokota, CEO of Marubeni’s Energy & Infrastructure Solution Group in his organisation’s official press release, 30 May 2023
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 to support Japan’s decarbonization strategy.Stuart Taylor, Pembina’s Senior Vice President & Corporate Development Officer in Marubeni’s official press release, 30 May 2023
Alberta is home to several similar projects. Itochu and Petronas Canada are still evaluating the feasibility of a million-tonne-per-year ammonia production plant based on CCS, while in Edmonton, Air Products’ Canada Net-zero Hydrogen Energy Complex is still under construction. And Nutrien has been operating a low-carbon ammonia production plant in Joffre for decades, utilising by-product hydrogen from an adjacent ethane cracker instead of hydrogen production via gas feedstock.