CIP has announced its strategic investment in CWP Global’s portfolio of hydrogen & ammonia mega-projects, acquiring a 26.67% stake in a key element of CWP’s green hydrogen business. In February, CIP acquired a majority stake in a CCS-based mega-project being developed in Louisiana by the Sustainable Fuels Group.
The million-tonne-per-year, $8.4 billion renewable hydrogen & ammonia production facility will be built near Al Muwaileh, Saudi Arabia. Project partner Air Products will act as EPC contractor, and has also secured exclusive ammonia offtake rights from NEOM for thirty years.
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.
IHI Corporation has announced three new ammonia partnerships this month. In the UAE, it will embark on Dubai’s first “green” ammonia feasibility study with the Emirates National Oil Company Group, with a solar-powered pilot plant to be built. In Malaysia, IHI and Petronas subsidiary Gentari Hydrogen will explore ammonia production from solar power in Johor, Malaysia. And following its investment in US-based Starfire Energy in November, IHI and Japan-based Angel Navi will identify more decarbonisation venture opportunities in Japan and around the world.
Rice University & Syzygy Plasmonics have demonstrated a new copper-iron photocatalyst for ammonia decomposition. The potential to replace expensive, rare materials like ruthenium would be a significant step, and Syzygy aims to couple the new photocatalyst and light-driven, all-electric reactor technology developed at Rice to decarbonise chemical & fuel production. It’s been a big month for Syzygy, which also closed a successful, $76 million Series C funding round, with Aramco, Chevron, LOTTE and Toyota all participating.
In our December episode of Ammonia Project Features, our three guests focused on renewable ammonia production in Sub-Saharan Africa. Allan Manhanga (Sable Chemicals) took us through the story of renewable ammonia production in Zimbabwe from 1972 to 2015, and what is needed to restart the industry there. Ralph Koekkoek (MET Development) presented a new renewable ammonia & fertilizer project underway in Kenya, with a focus on local farmers and national food security. And Marcel Jacobs (African Hydrogen Partnership) emphasized the important role of organisations in raising awareness & de-risking future projects, particularly through approaches like the proposed East African Green Hydrogen and Fertilizer Corridor.
The European Commission has signed strategic partnerships with three countries at COP27: Namibia, Kazakhstan and Egypt. Key cooperation areas include boosting the rollout of renewable energy generation for hydrogen production, and European investment to finance renewable hydrogen production. Also in Sharm el-Sheikh, German Chancellor Olaf Scholtz announced the first tender process for H2Global will shortly commence, with a further €4 billion to be invested into the pay-for-difference initiative.
In our November episode of Ammonia Project Features we explored two gigawatt-sized ammonia production projects in Northwest Africa: AMUN (Morocco) and AMAN (Mauritania). Nouri Chahid (CWP Global) presented project details, while Lloyd Pinnell (Systemiq) explored the socio-economic impacts of AMAN in Mauritania. If developed in the right way, AMAN could provide potable water, access to cheap renewable electricity, significant local employment & education opportunities, as well as the opportunity to build institutions to best manage new economic windfalls.
The Canadian government has proposed a significant tax credit for hydrogen production in the country - at least 40% if all conditions are met. Citing the Infrastructure Reduction Act in the US, the Department of Finance sees adoption of “competitive” measures as critical to make sure Canada is not “left behind”. The government will shortly launch industry consultation on how best to implement the tax credit, based on lifecycle carbon intensity of hydrogen.
ENGIE has successfully reached a final investment decision on Project Yuri. The collaboration with Yara will see renewable hydrogen feedstock produced next door to Yara’s existing ammonia & fertiliser production facility in Karratha, Western Australia, with construction to commence this year, and production of renewable hydrogen to begin in 2024.
In further developments, Yuri has new stakeholders, with Mitsui & Co. securing a 28% interest stake in Yuri, and Technip Energy being selected to lead EPCC works. And in certification news, the Smart Energy Council also announced it has granted pre-certification for renewable hydrogen & ammonia production from Project Yuri, under the Zero Carbon Certification Scheme.