Inpex Corporation takes FID on Japan’s first blue hydrogen and ammonia facility

Inpex Corporation takes FID on Japan’s first blue hydrogen and ammonia facility

Inpex Corporation has taken a final investment decision (FID) on drilling and constructing a blue hydrogen and ammonia production facility which would be the first demonstration project in Japan.

The Kashiwazaki Clean Hydrogen/Ammonia Project is expected to involve the transportation of natural gas produced at the INPEX- operated Gas Field in Niigata Prefecture to the Hirai area using an existing pipeline, and production of 700 tonnes of blue hydrogen per year at a hydrogen production facility to be newly constructed in the area. It is targeting commercialisation from 2030.

A portion of this hydrogen will be used to produce blue ammonia per year, and the remaining hydrogen used for power generation.

The carbon dioxide (CO2) generated during the production of hydrogen and ammonia will be separated, pressurised, and injected in a subsurface gas reservoir as a Carbon dioxide Capture, Utilisation and Storage (CCUS) initiative, thereby ensuring the production of blue hydrogen and ammonia and contributing to the low carbon movement.

INPEX plans to oversee the safety of the CO2 injection procedure as well as monitor its effects.

As well as marking Japan’s first demonstration project integrating blue hydrogen and ammonia production and usage, it is one of the few globally to have taken FID on the construction of an actual production plant, where most of the blue hydrogen and ammonia production projects currently remain in the conceptual or planning stages.

It is also an important project from the perspective of Japan’s energy security as it will produce clean energy from domestically sourced gas.

The project’s hydrogen and ammonia production and CO2 recovery will be subsidised by the New Energy and Industrial Technology Development Organization (NEDO).

INPEX will conduct joint research with Japan Organization for Metals and Energy Security (JOGMEC) on the evaluation and implementation of subsurface storage of CO2 as part of the ‘Demonstration test on identifying possible CO2 storage solutions utilizing domestic depleted oil and gas fields’.

INPEX seeks to develop hydrogen and CCUS businesses, which represent two of the five net zero businesses outlined in the company’s INPEX Vision @2022 announced on February 9.

The company plans to commercialise three or more projects by around 2030 and aims to produce and supply 100 thousand tons or more of hydrogen/ammonia per year targeting an annual CO2 injection volume of 2.5 million tonnes or more in around 2030.

The company will also continue to study blue hydrogen/ammonia and CCS/CCUS project opportunities in other countries utilizing the experience gained from the project.

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