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Petronas eyes $1.3B project in Alberta to export hydrogen to Asia


Petronas and Japanese conglomerate Itochu would collectively market the ammonia produced on the Alberta facility

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CALGARY — The Canadian division of Malaysia’s state-owned oil large Petroliam Nasional Berhad, or Petronas, plans to construct a $1.3 billion petrochemical plant in central Alberta with the purpose of exporting hydrogen to an Asian markets.

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Petronas Power Canada Ltd. introduced Tuesday it has teamed up with Japan’s Itochu Corp. and an unnamed Calgary-based pipeline firm on a feasibility research on a facility able to producing 1 million tonnes of ammonia per 12 months whereas capturing the carbon emitted within the course of.

“Ammonia is a really environment friendly means for the transportation of hydrogen,” mentioned Petronas Power Canada president and CEO Mark Fitzgerald in an interview Tuesday.

The mixture of nitrogen and hydrogen, which on this case could be sourced from Petronas’ pure fuel operations in northeast British Columbia, produces ammonia.

“On the finish level, the consumer, which on this case could be markets abroad, would cut up it into nitrogen after which hydrogen, which might be used as a gas supply,” Fitzgerald mentioned, including the undertaking could be thought of a “blue ammonia” or “blue hydrogen” as a result of it could seize the related carbon emissions.

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Each Petronas and Itochu, a Japanese conglomerate, would collectively market the ammonia produced on the facility in Asian markets, “probably for thermal energy technology in Japan, changing hydrocarbon-based fuels for energy vegetation, metal, chemical manufacturing and different purposes.”

Japan’s economic system, commerce and business ministry has a purpose of securing 30 million tonnes of ammonia by 2050 in an effort to succeed in a net-zero carbon emissions purpose by 2050.

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Fitgerald mentioned Petronas, which operates in over 90 nations, believes Canada is a perfect place to develop the blue ammonia/blue hydrogen facility due to the nation’s huge pure fuel reserves, its hydrogen technique and willingness to help carbon seize utilization and storage (CCUS) investments.

“Each the Alberta authorities and the federal government of Canada have dedicated to working with non-public sector corporations akin to ourselves to actually drive that hydrogen technique for Canada. We have now an ample provide of pure fuel, which transitions to blue hydrogen,” he mentioned.

Alberta’s Affiliate Minister of Pure Fuel and Electrical energy Dale Nally mentioned his authorities was happy by Petronas’ and Itochu’s determination to pursue an ammonia manufacturing facility in Alberta.

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“That is an unimaginable alternative for Alberta’s pure assets to succeed in new markets and additional show the innovation that powers our dynamic power sector,” the minister mentioned in an e-mail.

If the businesses determined to proceed with the undertaking, they count on to begin development in 2023 and produce ammonia in 2027. The businesses imagine development on the undertaking will create 10,000 direct and oblique jobs and three,300 everlasting jobs as soon as the ability is operational.

Fitzgerald declined to call the native pipeline firm taking part within the undertaking’s feasibility research.

Each TC Power Corp. and Enbridge Inc. have beforehand labored to develop westbound pure fuel pipelines for proposed liquefied pure fuel (LNG) initiatives on the B.C. shoreline together with the Prince Rupert Pure Fuel Transmission line, which is totally permitted by regulators, and the WestCoast Connector Fuel Transmission line.

Because the LNG services related to these initiatives have been scrapped in recent times, officers within the Alberta authorities are hopeful the pipelines could possibly be repurposed to move hydrogen to the West Coast earlier than in the end being exported to Asia.

• E mail: gmorgan@nationalpost.com | Twitter:

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In-depth reporting on the innovation economic system from The Logic, delivered to you in partnership with the Monetary Publish.

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