Chevron : Partners study ammonia supply for low-carbon energy in Japan

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emissions solutionspartners study ammonia supply for low-carbon energy in Japan

2 min read | january 27, 2023

Low-carbon hydrogen produced by Chevron in western Australia could be converted into ammonia for use in Japan and other developed Asian nations.

Chevron and JERA, Japan's largest electricity generator, are exploring opportunities for collaboration that could eventually help reduce the carbon intensity of Japan's power plants.

In a feasibility study slated to wrap up in 2023, the two companies are examining the potential for producing lower carbon ammonia in western Australia. That ammonia, made from hydrogen, could then be exported to Japan and other developed Asian nations. JERA, which supplies almost 30% of Japan's electricity, would replace a percentage of its coal use with the ammonia, lowering carbon emissions from its operations.

The joint study will be bolstered by Chevron's expertise in the liquefied natural gas (LNG) value chain and carbon capture and storage (CCS).

customer relations

Andrew Mingst, Chevron general manager for hydrogen in Asia-Pacific, said JERA is the largest buyer of natural gas in Japan and Chevron's largest LNG customer. The relationship between JERA and Chevron could extend into other new energy business lines as well, including CCS.

"At the core of our strategy is leveraging our existing capabilities, assets and customer relationships. The work with JERA is a quintessential example of Chevron executing on this."

andrew mingst

asia-pacific hydrogen GM

capturing carbon

Japan has long relied on nuclear power and energy imports, such as LNG from Chevron, to meet its energy needs. But there are public concerns over Japan's use of nuclear power, Mingst said.

"Nuclear power faces an uphill battle for further development, so that leaves customers in Japan with fewer alternatives to gas- and coal-fired plants," he said. "For coal plants, they can burn ammonia alongside coal and achieve significant carbon emissions reductions."

Another way to reduce carbon emissions from coal-fired power plants is to implement CCS. However, Mingst said the geology in Japan is generally less favorable for carbon storage than elsewhere in the Asia-Pacific region.

"While Japan is not ideal for storage, Chevron is exploring storage opportunities in other locations in Asia-Pacific that may be candidates for CO₂ export from Japan," Mingst said.

assets and capabilities

Chevron has the assets and capabilities in Australia to support development of hydrogen and ammonia production. This includes capability for CCS, and new underground carbon storage facilities could serve dual purposes. Those storage facilities could be used to store carbon from existing LNG operations as well as from the production of lower-carbon hydrogen and ammonia.

"There are concepts here that would allow us to further decarbonize our existing LNG business and, at the same time, produce a new, affordable, reliable and ever-cleaner product," Mingst said.

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• emissions solutions

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