Woodside Energy and Japanese partners to explore potential ammonia supply chain from Australia to Japan

Ammonia-fueled power generation is one of the most promising options for decarbonizing power sources toward achieving carbon neutrality by 2050

Ammonia molecules

Woodside Energy, Japan Oil, Gas and Metals National Corporation, Marubeni Corporation, Hokuriku Electric Power Company, The Kansai Electric Power Co., Tohoku Electric Power Co., and Hokkaido Electric Power Co have signed a joint research agreement under which they will jointly conduct a feasibility study (Phase 2) on the establishment of a lower-emissions fuel ammonia supply chain from Australia to Japan.

Ammonia, an inorganic compound of one atom of nitrogen connected to 3 atoms of hydrogen, does not emit carbon dioxide (CO2) during combustion. Given existing proven technologies for the production, storage, and transportation of ammonia, it is expected to have early take-up as a lower-emission fuel.

Ammonia-fueled power generation is one of the most promising options for decarbonizing power sources toward achieving carbon neutrality by 2050 since it does not emit CO2 during combustion and can be utilized in many existing power generation facilities such as boilers and denitration facilities without modification.

Last year, Woodside, JOGMEC, Marubeni, Hokuriku Electric, and Kansai Electric conducted a feasibility study on the entire supply chain, including the production of lower- emissions ammonia in Australia from natural gas with CO2 abatement methods such as Carbon Capture and Storage (CCS), Carbon Capture and Utilisation (CCU) 1 , and bio- sequestration; marine transportation to Japan; ammonia’s utilization as a fuel for power generation and marine use; and financing. In last year’s study, the parties sought to address the feasibility of establishing a supply chain in relation to economics and CO2 emission reduction.

As part of Phase 2 of the Project, the seven parties, including Tohoku Electric and Hokkaido Electric as new participants, will conduct a further detailed feasibility study to inform the viability of establishing a lower-emissions fuel ammonia supply chain based on the results of the feasibility study conducted the previous year.

All parties participating in this project will continue the research already conducted in order to establish a lower-emissions fuel ammonia supply chain between Australia and Japan through collaboration, in an effort to assist the decarbonization of Australia and Japan.

To read more about domestic policy regarding ammonia as a fuel source, go to the Government website here.

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