Mitsui & Co., Inc (a major ammonia trader) and CF Industries Holdings, Inc. (a leading ammonia producer) agreed to support a joint exploration of the development of blue ammonia projects in the US.
Under the memorandum of understanding, both partners plan to conduct various preliminary feasibility studies to produce blue ammonia in the US. They will study various areas such as establishing blue ammonia supply and supply chain infrastructure, CO2 transportation and storage, expected environmental impacts, and blue ammonia economics and marketing opportunities in Japan and in other countries.
Tony Will, CEO of CF Industries Holdings, Inc, said, “As countries and industries continue to develop plans to achieve net-zero carbon emissions, there is broad interest in blue and green hydrogen and ammonia to help meet the world’s clean energy needs.”
In a separate development, Horisont Energi and Port of Rotterdam also signed a memorandum of understanding for setting up a corridor for transporting blue ammonia, produced in Northern Norway, from natural gas with carbon capture and storage, to the port of Rotterdam, where it will be received for further distribution to meet expected demand in Northwestern Europe.
The final investment decision for the production of blue ammonia at the Barents Blue project is expected by the end of 2022. Blue ammonia could be shipped to Rotterdam by 2025. Once operational, Barents Blue would have 3,000 tonnes/day of ammonia or 1 million tonnes/year production capacity.
Nearly 13% of total European energy demand passes through the port of Rotterdam. The port aims to be net-zero CO2 emissions in 2050. The port anticipates that the demand in Rotterdam is expected to be about 20 million tonnes of hydrogen, equivalent to 100 million tonnes of ammonia, in 2050.