Japan’s largest utility, JERA, is looking to invest in low-carbon hydrogen and ammonia projects in the Middle East, in addition to buying their production.
JERA has established a division that invests in such factories. Tsuyoshi Oyama, head of the unit’s Australia and Middle East operations, said facilities that could produce around 1 million tonnes of ‘blue’ ammonia per year were attractive targets, as were smaller ‘green’ hydrogen projects.
Some of the world’s largest planned blue ammonia plants, which capture carbon dioxide emitted during the production process, are in the Middle East. The hydrocarbon-dependent region hopes that capturing emissions will ensure it can continue producing fuels from oil and gas despite growing demand for cleaner fuels.
The Japanese company signed preliminary agreements with the Saudi Public Investment Fund and Abu Dhabi National Oil to collaborate on clean ammonia and hydrogen. It recently agreed to work with CF Industries Holdings on an ammonia plant in Louisiana.
Japan is expected to be one of the largest consumers of clean hydrogen and ammonia. JERA is testing the use of ammonia as a replacement for coal at its Hekinan power plant in an effort to reduce greenhouse gas emissions.
