It’s more likely to be found in toilet bowl cleanser, and everybody knows what it smells like. Now, it’s an essential part of Alberta’s efforts to clean its emissions from energy production..In a tantalizing vision of what a low carbon future will look like in Alberta, Calgary-based Pembina Pipeline announced Tuesday it's teaming with Japanese conglomerate Marubeni Corporation to build an integrated “end-to-end” hydrogen and ammonia plant near Edmonton..The facility is part of a broader plan to build out a low carbon ammonia supply chain for export to Japan and other Asian markets using Alberta-sourced natural gas as the primary feedstock. Tokyo-based Marubeni is one of Japan’s oldest corporations with specific expertise in power, chemicals, and green energy infrastructure..In a press release, Stu Taylor, Pembina’s senior VP and corporate development officer, described it as a “transformative opportunity” to develop new integrated value chains, including carbon capture and storage..“Marubeni has deep expertise in areas critical to the success of the project and we are delighted to be working with them to facilitate the global movement towards greater use of low-carbon ammonia and to support Japan's decarbonization strategy.”.The facility will be located on 2,000 acres adjacent to Pembina’s existing Redwater facilities near Fort Saskatchewan, north of Edmonton. Initial feasibility studies were completed on a facility with capacity to produce 185 kilotonnes of hydrogen and 1 million tonnes of ammonia per year. Front-end engineering is expected to be complete in 2024.. Ammonia value chainAmmonia value chain. .Pembina will operate the facility while Marubeni will leverage its marketing and marine logistics capabilities, and is expected to contract for the production, which will be used to supply Marubeni-owned and other Japanese utility power plants..Ammonia is one of the most widely produced synthetical chemicals in the world today and the production technology and handling are well understood owing to its role as a fertilizer for agriculture. Alberta is already the leading region in Canada for existing ammonia production and the infrastructure is well established..Demand for low-carbon ammonia in Japan and other Asian markets is expected to grow exponentially given its efficiency as a carrier of hydrogen and use as a low-carbon fuel source for internal combustion engines. It's also considered to be an ideal chemical storage medium for energy produced from windmills and solar panels.. Ammonia moleculeAmmonia is one of the most common molecules in the solar system. .This particular facility will use a variation of the so-called Haber-Bosch process, which was developed in the early 1900s to address fuel shortages during the First World War. In it, natural gas — or even coal — is mixed under pressure with steam and air coupled with the subsequent removal of water and CO2. .The byproducts of the process are hydrogen and nitrogen. Nitrogen can be further refined into fertilizer, while hydrogen is widely seen as a fuel for the future in heavy transport such as railway locomotives and heavy trucks..Although it generates about two tonnes of CO2 for every tonne of ammonia, the companies aim to pump it back into the ground on the proposed Alberta Carbon grid being developed by Pembina and TC Energy..It wasn’t immediately clear if it will be eligible for the Alberta Petrochemical Incentive which allows companies to apply for grants amounting to 12% of eligible capital costs. Money is given out after the plants started operating. The federal government also offered tax credits for eligible carbon capture projects, which are seen as essential elements of Alberta’s efforts to reach net-zero by 2050.."The project will leverage access to existing infrastructure and benefit from Canada's abundant natural gas supply, advantaged West Coast shipping access to Asia, and growing carbon capture and sequestration industry,” said Yoshiaki Yokota, Marubeni's Energy & Infrastructure CEO..“Pembina has a long history and strong reputation as a leading Canadian energy infrastructure provider and we are honoured to be working together as partners in the establishment of a low-carbon fuel supply chain from Canada to Japan.”
