Alaska Gasline reaches MoU on zero-carbon ammonia production

Alaska Gasline Development Corp. (AGDC) has signed on MoU with Mitsubishi Corp., Toyo Engineering Corp., and Hilcorp Alaska LLC to assess the potential to produce zero-carbon ammonia in the Cook Inlet region of southcentral Alaska. The parties will evaluate the commercial feasibility of using North Slope natural gas delivered via the Alaska LNG project to produce carbon-free ammonia.

Carbon dioxide generated from this process would be captured and sequestered in secure underground geologic formations, Cook Inlet basin having been identified as having world-class carbon sequestration potential, according to AGDC. Assessment will further define Cook Inlet’s sequestration potential and the economics for producing clean ammonia alongside LNG in Alaska. Round-trip tanker transport from Alaska to key Asian markets is more than 12,000 miles shorter than from the US Gulf Coast, reducing costs and shipping emissions.

Ammonia emits no carbon dioxide when burned, is rich in hydrogen, and is easier to transport than hydrogen. Ammonia is central to the zero-carbon energy strategies of nations across the Pacific Rim, including goals by Japan and Korea to become carbon neutral by 2050, AGDC said.

Japan plans to grow ammonia use in energy production to 3 million tonnes/year by 2030, from zero today.