Japanese infrastructure developer, Mitsui & Co has formed a joint venture with manufacturing company CF Industries to explore opportunities within the US market for blue ammonia.
As part of a Memorandum of Understanding signed by the two companies, CF Industries will use its experience and help Mitsui & Co to expand its presence within the renewables market.
The partnership comes at a time when the demand for low carbon fuels including hydrogen and blue ammonia is expected to increase over the coming years as the decarbonisation of the energy sector and industries intensifies.
The joint venture will execute various preliminary studies on the feasibility of blue ammonia production in the US. The studies will focus on the establishment of infrastructure for blue ammonia supply, CO2 transportation and storage, environmental impacts, as well as blue ammonia economics and marketing opportunities in Japan and in other countries.
The partnership with Mitsui & Co falls under efforts by CF Industries to increase its focus on the decarbonisation of ammonia production to speed up the global transition to net-zero.
Other efforts by CF Industries to achieve this goal include the signing of an agreement to develop the first commercial-scale green ammonia project in Louisiana, USA. These goals will enable CF Industries to achieve its target to reduce carbon intensity by 25% by 2030 and to achieve net-zero emissions by 2050.
Tony Will, president and chief executive officer, CF Industries Holdings, Inc, said: “As countries and industries continue to develop plans to achieve net-zero carbon emissions, there is broad interest in blue and green hydrogen and ammonia to help meet the world’s clean energy needs.”
Blue ammonia generally relates to the production of ammonia (NH3) with its byproduct carbon dioxide (CO2) removed through carbon capture and sequestration.
Blue ammonia, according to the latest findings by the Gas Exporting Countries Forum (GECF), has the potential to be a prominent contributor to a clean energy transition. Ammonia is classified as ‘blue’ when it is produced from natural gas feedstock and the released CO2 is captured by CCS/CCUS technologies, or it can be labelled as ‘green’ when it is derived from electrolysis hydrogen produced by renewable resources.