Energy companies Jera and Uniper have announced a non-binding heads of agreement together with hydrocarbon exploration and production company, ConocoPhillips, for the sale of ammonia to Uniper.
The project would have an initial production capacity of 2 MTPA of low-carbon ammonia with potential for expansion in the future.
The companies plan to jointly develop the production facility project which would accelerate production and supply of low-carbon fuel to markets in the U.S., Europe, Japan, and greater Asia. The project will also include evaluation and development of carbon capture and sequestration (CCS) facilities.
The proposed ammonia production facility would produce hydrogen and convert it into clean ammonia for transport to markets abroad with a target of achieving first commercial deliveries by the end of the decade.
Steven O’Rourke, CEO of JERA Americas says: ‘We are very pleased to announce this contracting progress with Uniper SE as a core customer for our low-carbon hydrogen/ammonia project…We continue to see strong demand for ammonia as a hydrogen carrier from a wide variety of users in Europe and Asia.’
‘Projects like this are critical when it comes to moving responsibly toward lower emission gases while ensuring security of supply for our customers…This project offers real opportunities in that regard, and we are pleased to be associated with it,’ adds Carsten Poppinga, CCO for Uniper