Jogmec, IOC, Toyo and Itochu to explore ammonia value chain

JOGMEC, Irkutsk Oil Company (IOC), Toyo Engineering Corporation (TOYO), and ITOCHU Corporation (ITOCHU) have agreed to conduct a joint feasibility study (Phase2) of the blue ammonia value chain between eastern Siberia and Japan.

This study will conduct a detailed analysis and develop a master plan for commercialization.

JOGMEC launched the “Carbon Neutral Initiative” on April 1, 2021, with the goal of promoting various projects that contribute to the development of a carbon-neutral society.

By maximizing the utilization of JOGMEC’s technical expertise in subsurface and surface characteristics, JOGMEC will bolster financial and technical assistance to Japanese enterprises seeking suitable locations for CCS and promoting environmentally responsible resource development.

Through its assistance for CCS, JOGMEC will also contribute to the development of blue hydrogen and ammonia supply chains and market expansion.

JOGMEC conducted a feasibility assessment for a supply network capable of transporting ammonia derived from hydrogen supplied by IOC from eastern Siberia, Russia to Japan in 2020 as Phase 1.
Additionally, JOGMEC examined critical aspects of the value chain and identified critical issues for commercialization.

In Phase 2, JOGMEC will implement a conceptual design for the production of ammonia from natural gas produced in IOC’s Eastern Siberian oil fields, entrusting TOYO and ITOCHU similarly to Phase 1. CO2 released during the ammonia manufacturing process is planned to be used for CO2-EOR to improve oil output in IOC-owned oil and gas fields in Eastern Siberia, or by other CCUS technologies. It is regarded appropriate to use a railway cargo or pipeline to deliver ammonia inland. The findings of the studies will be used to develop a phased approach and schedule for commercialization of the value chain.

IOC, JOGMEC, TOYO, and ITOCHU will contribute to the establishment of a blue ammonia value chain between Eastern Siberia and Japan by leveraging the parties’ technologies and knowledge and promoting the realization of a carbon-neutral society in Japan and Asia through the introduction of blue ammonia as a fuel for power plants, ships, and other applications.