Japan’s largest refiner ENEOS said March 25 it signed a memorandum of understanding with Saudi Aramco to consider development of a CO2-free hydrogen and ammonia supply chain as it accelerates efforts to develop hydrogen production, transport and sales businesses.
Under the MOU, which was ENEOS’ first of its kind with a Middle Eastern producer, the two companies will conduct a year-long feasibility study looking at means of hydrogen production and transport options, an ENEOS spokeswoman said.
During the feasibility study, ENEOS and Saudi Aramco will jointly look at Aramco’s hydrogen production derived from feedstocks such as natural gas and LPG as well as capture and storage of its associated CO2 from production, ENEOS said.
The companies will also look at means to transport hydrogen including in forms of ammonia and methylcyclohexane (MCH) from Saudi Arabia to Japan and other consumers.
Japan imported the maiden blue ammonia cargo in 2020 from Saudi Arabia to be used for power generation, with the CO2 capturing process designated for use in methanol production at SABIC’s Ibn-Sina facility, as well as capturing CO2 used for enhanced oil recovery at Saudi Aramco’s Uthmaniyah field.
Ammonia — three hydrogen atoms and one of nitrogen and, thus, about 18% hydrogen by weight — releases no carbon emissions when combusted in a thermal power plant.
ENEOS said it signed its MOU with Saudi Aramco because Saudi Arabia, where Japan imports more than a third of its annual crude oil consumption, has a long term and stable supply potential.
Following an outcome of the feasibility study, ENEOS said it intends to import hydrogen and its related products with an eye to supplying hydrogen for power generation at its refineries as well as local companies.
With its expertise and infrastructure of automobile fuels supply, ENEOS has said it intends to speed up its efficient development of hydrogen production, transport and sales businesses.
Green strategy
Japan formulated its carbon neutral 2050 strategy in December, with aims to produce 3 million mt/year of hydrogen by 2030 and 20 million mt/year by 2050 by accelerating developments of international supply networks as well as cultivating demand in various sectors.
The Green Growth Strategy for 2050 Carbon Neutral includes plans for ammonia, following the carbon neutrality target announced by Prime Minister Yoshihide Suga in October…
