Key elements of Japan’s Green Transformation (GX) push have been unveiled, including policy support for the implementation of ammonia energy solutions, and a $1 trillion total public-private investment package. A subsidy scheme to address the price difference between hydrogen, ammonia and fossil fuels is included, with a nominal price tag of $36 billion, running into the 2030s.
The Glenfarne – Samsung Engineering partnership plans to deliver renewable ammonia projects in Chile and the US, guaranteeing current LNG customers access to ammonia fuel in the early stages of the energy transition. And, seeking to become a model for future renewable utility companies, PASH and ERIH will form a hydrogen & ammonia joint venture to develop production projects in Italy and Turkey.
Mitsui & Co., INPEX and Japanese government agency JOGMEC will partner with ADNOC to verify the emissions intensity of ammonia produced at a new project in al-Ruwais, UAE. The final methodology is likely to reflect the definition of clean ammonia currently being developed in Japan. Shipments of CCU-based ammonia have arrived in Japan & India in recent weeks from SABIC in Saudi Arabia, further highlighting the potential of Middle East supply chains.
The Clean Energy Precinct will develop over 1.6 GW of electrolytic hydrogen production capacity within 5 years, as well as producing renewable ammonia. Works on the project are expected to commence in 2025, with commercial operations expected in 2028.
While the opportunity for Australia to become a world-leading exporter of green molecules is well-established, State of Hydrogen 2022 suggests the best progress to date has been made on a domestic opportunity: decarbonisation of existing ammonia production within Australia. Government support for emerging hydrogen hubs, workforce training and regulatory updates are highlighted as key next steps.
The International Energy Agency has proposed a new taxonomy for hydrogen definitions based on emissions intensity, moving away from color labels. In Towards hydrogen definitions based on their emissions intensity, the IEA proposes a set of nine distinct, technology-neutral emissions intensity bands. The report also advocates for an international approach to ensure interoperability between certification schemes, and suggests that a mutual recognition approach based on the IPHE’s emissions methodology is the best way forward.
Through this partnership, Keppel and Exxon Mobil look to leverage their experience to deliver low or zero-carbon hydrogen and ammonia solutions to support Singapore’s quest to decarbonise its power sector.
Amp Energy will develop 5 GW of electrolyser capacity in Cape Hardy, South Australia. At full scale the project will produce 5 million tonnes of renewable ammonia per year for export. The precinct has ready access to renewable power, deepwater port infrastructure and undeveloped land.
Yara Clean Ammonia and Enbridge will jointly develop a CCS-based ammonia production facility in Corpus Christi, Texas. Located at the Enbridge Ingleside Energy Centre, as much as 1.4 million tonnes of ammonia per year will be produced, with Yara expected to act as full offtaker.
The UK government has released a consultation paper outlining its current position on several certification dilemmas, as it works towards launching a fully functioning low-carbon hydrogen certification scheme before 2025. The paper grapples with challenging design choices including chain of custody and scheme participation while emphasising the importance of international collaboration and interoperability.