Uniper, JERA exploring US hydrogen-to-ammonia project
Finnish-German energy group Uniper and Japan's JERA are looking at producing clean ammonia on the US Gulf Coast, using a proposed plant that would use both green and blue hydrogen resources, the partners announced September 5.
JERA's American subsidiary is working to build a hydrogen facility on the US Gulf Coast. Initially, the plant would supply around 2mn metric tons/yr of clean ammonia, using a combination of blue and green hydrogen, but could reach 8mn mt/yr capacity at peak.
Uniper and JERA envisage the conclusion of a sales and purchase agreement to supply ammonia to European customers, as well as the US, Japan and greater Asia.
The Gulf Coast hydrogen facility is being developed by JERA and US major ConocoPhillips, with Uniper participating solely in the ammonia operation for the moment.
Project engineering studies are being prepared to evaluate green and blue hydrogen feed locations, with an outline for the project's first development phase anticipated by 2022-end. Work is also underway to develop a "certified" carbon capture and storage site, to further decarbonise JERA's Gulf Coast supply chain.
Uniper officials believe that by 2030 around 1mn mt/yr of green ammonia could be produced.
In addition, it is working with JERA to optimise LNG portfolios for trading into their respective domestic markets. Uniper, for instance, will use the opportunity to tackle Germany's need for LNG, the deal coming in the wake of Nord Stream's indefinite curtailment.
The two companies have teamed up previously having in March unveiled a framework alliance with UAE national oil and gas company ADNOC, aimed at transporting UAE-produced hydrogen to Germany, using German startup Hydrogenious's liquid organic hydogen carrier technology.
JERA Americas CEO Steven Winn said: "The combination of a skilled workforce, plentiful natural gas, abundant renewable resources, deep-water ports, and ideal CCS geology make the US Gulf Coast uniquely advantaged to produce the low carbon fuel to enable the Atlantic and Pacific energy markets transition. JERA and ConocoPhillips will be a low-cost ammonia supplier to domestic and international markets."
Niek Den Hollander, COO at Uniper SE, added: "Our collective goal is to jointly develop and deliver material LNG supply in the very near term and US sourced green and blue hydrogen to Europe to support our longer-term values and goals."