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Collaboration on planned world-scale blue ammonia and blue methanol facilities showcase Alberta’s leadership in cleantech and emissions reduction

Collaboration on planned world-scale blue ammonia and blue methanol facilities showcase Alberta’s leadership in cleantech and emissions reduction

Alberta continues to lead Canada’s energy transition as Inter Pipeline Ltd., ITOCHU Corporation, and PETRONAS Energy Canada Ltd. sign a Memorandum of Understanding (MOU) with Invest Alberta to assist the companies in exploring the development of world-scale integrated blue ammonia and blue methanol production facilities in Alberta’s Industrial Heartland. 

The proposed facilities would help reduce global emissions and further Alberta’s energy sector decarbonization efforts through the production of thousands of metric tonnes per day of blue ammonia and blue methanol.

Joined by Alberta’s Associate Minister of Natural Gas and Electricity, the Honourable Dale Nally, the parties participated in the MOU signing ceremony in Tokyo, Japan this week. Invest Alberta will work with the companies to connect them to government departments, relevant stakeholders, funds and accelerators, and assist with navigating Alberta’s regulatory framework.

ITOCHU, a Japanese trading house, is seeking a long-term supply of ammonia to meet local green energy mandates in Japan, where the government is seeking a supply of up to 3 million tonnes per annum of ammonia by 2030 to meet emissions reductions targets. 

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“This project would be among the first of its kind in North America. Once operational, these facilities would be at the forefront of diversifying Canada’s abundant supply of raw resources by converting them to value-added, energy transition products to supply growing global markets with low or no-carbon fuel and energy products.”

  • Brian Baker, President and CEO, Inter Pipeline Ltd. 

“This feasibility study is a first step in increasing our understanding of the project’s potential. With the abundance of clean natural gas, existing infrastructure and strong environment, social governance and regulatory construct in British Columbia and Alberta, this strategic partnership and project has the potential to create well-paying jobs and bring a secure supply of blue ammonia to the Asian markets and lower global emissions.”

  • Izwan Ismail, President and CEO, PETRONAS Energy Canada Ltd.

CO2 emitted during processing of both products would be sequestered underground permanently and the resulting blue products could be shipped to global markets.

Ammonia is an efficient method of transporting hydrogen. Methanol is used for many consumer goods like adhesives and construction materials and is also being evaluated for use as a low-carbon fuel for the shipping industry.

“We’re excited to see meaningful investment interest to bring Alberta’s clean energy products to new and growing markets in Japan and the rest of Asia. Alberta is Canada’s energy leader. Partnerships like this help share our ethically sourced resources with waiting customers around the world who also share our deep ESG commitments. These are exactly the kinds of opportunities we have worked hard to secure, leveraging new investment attraction programs alongside our low corporate tax rates and welcoming business environment. Alberta is the best place to invest in the clean energy future and we are pleased this reputation is being leveraged by our prominent and much respected Asian partners.”

  • Honourable Dale Nally, Associate Minister of Natural Gas and Electricity

The facilities join the growing list of planned hydrogen projects in Alberta, including investments from Northern Petrochemical Corporation, Air Products and more. Alberta’s Industrial Heartland is also the largest petrochemical manufacturing centre in Canada, with 40 industrial sites, 7,000 employees, and the infrastructure to support large-scale cleantech investments.

“Today’s announcement is another example of Alberta’s growth in cleantech as international investors continue to make Alberta a destination of choice for new energy projects. Alberta’s hydrogen economy continues to grow, creating a path towards, clean energy, less emissions, and new jobs,”

  • Rick Christiaanse, CEO, Invest Alberta

Source: Invest Alberta


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