JERA Americas, Uniper, and ConocoPhillips have announced a non-binding Heads of Agreement for the sale of ammonia to Uniper.
This move propels their collaboration on a low-carbon ammonia production facility along the US Gulf Coast into its next phase. This ambitious project, aimed at reducing carbon emissions and advancing the clean energy transition, is set to have far-reaching implications.
The journey towards sustainable ammonia production began with a Memorandum of Understanding (MOU) signed by the parties in September 2022. The MOU aimed to assess the potential for establishing ammonia production facilities in the region. Today’s announcement signifies a substantial leap from conceptualization to tangible progress. The project’s initial phase is slated to have a production capacity of 2 million metric tonnes per annum (MTPA) of low-carbon ammonia, with provisions for future expansion.
ConocoPhillips and JERA Americas, a subsidiary of JERA Co., Inc., are set to spearhead the joint development of this production facility project. The primary objective is to accelerate the production and distribution of low-carbon fuel to markets spanning the United States, Europe, Japan, and greater Asia. Integral to the project is the assessment and development of carbon capture and sequestration (CCS) facilities. The proposed ammonia production facility will not only produce hydrogen but will also convert it into clean ammonia for export to international markets. The project envisions achieving its first commercial deliveries by the end of this decade.
Steven O’Rourke, CEO of JERA Americas, emphasized the importance of this collaboration, stating, “The rapid development of global-scale, low-carbon hydrogen/ammonia production is critical to the timely realization of our collective global energy transition initiatives.” Ammonia, as a carrier of hydrogen, is poised to play a vital role in decarbonizing industries in Europe and Asia.
Carsten Poppinga, Chief Commercial Officer for Uniper SE, underscored the project’s significance in transitioning to greener feedstocks and securing future supply. He highlighted the project’s potential to accelerate the energy transition in Europe and globally.
Expanding the Green Vision: “Green Wilhelmshaven”
Uniper has further demonstrated its commitment to the green energy cause by introducing “Green Wilhelmshaven.” This initiative combines hydrogen imports and production to establish a common European hydrogen market. Uniper has already submitted this project to the German Federal Ministry of Economics as an Important Project of Common European Interest (IPCEI). IPCEIs aim to foster integrated projects across the hydrogen value chain, contributing to Europe’s pursuit of clean and sustainable energy.
The JERA Americas, Uniper, and ConocoPhillips partnership not only signifies a major stride in low-carbon ammonia production but also solidifies the US Gulf Coast’s position as a hub for sustainable energy solutions with global implications. This collaboration could serve as a template for future clean energy projects, ushering in a new era of carbon-conscious industrial practices.
