Is Ammonia the Next LNG?
01.04.2024 By Tank Terminals - NEWS

January 4, 2024 [Australian Resource and Management]- Low-emissions ammonia presents an opportunity for Australia to build a parallel export business mirroring the early rise of the liquefied natural gas (LNG) sector.

 

Similarly to what LNG did in the past, low-emissions ammonia allows Australia to supply a new, decarbonising energy source to critical export markets in Asia, who already have a well-established strategic relationship with Australia and see the country as a preferred supplier.

Australia is already the largest LNG supplier in the world with 87.6 million tonnes per annum of export capacity, supporting export revenue of $92.8 billion in 2022. The country already boasts the necessary infrastructure, relationships, technical expertise and political support.

Many companies are looking at electrolysis-based hydrogen and ammonia projects, but these face cost, schedule, and technology challenges. Companies recognising the early-mover potential for low-emissions ammonia from gas with carbon capture and storage (CCS) include Woodside (pursuing a project near Perth) and Mitsui and Wesfarmers (pursuing a project in the mid-west).

One company that recognised this opportunity early and has made significant progress is ASX-listed Hexagon Energy Materials though its WAH2 low-emissions ammonia project in the Pilbara region of Western Australia.

The WAH2 project aims to convert natural gas into ammonia using proven technology, capture the associated CO2 for sequestration at a nearby third-party facility, and export the product via existing facilities at the nearby Port of Dampier.

Hexagon describes WAH2 as one of only five proposed low-emissions ammonia export projects in Australia that use natural gas feedstock and CCS – and the only one that has the advantages of access to an existing deepwater port and multiple, mature CCS projects nearby.

The company is working towards entry into front-end engineering and design (FEED) in mid-2024 and project sanction in 2025. First production is anticipated in 2028, in good time to contribute to 2030 decarbonisation targets.

 

Pro Trial: Access 12,600 Tank Terminal and Production Facilities

12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Energy-Related Emissions Hit a Record High Last Year Despite Renewables Surge
03.02.2024 - NEWS
March 2, 2024 [Oil Price]- Despite a decline in fossil fuel use in developed economies, global en... Read More
Chinese Oil Product Demand Could Peak by 2025
03.02.2024 - NEWS
March 2, 2024 [Oil Price]- Demand for petroleum products in China could peak before next year, th... Read More
Cheap Spot Prices Boost China’s LNG Imports to Record High for February
03.02.2024 - NEWS
March 2, 2024 [Oil Price]- China imported in February a record volume of LNG for the month, as bu... Read More
Russia’s Rosneft Moves to Sell its German Refinery Assets
03.02.2024 - NEWS
March 2, 2024 [Oil Price]- Russia’s state-controlled oil giant Rosneft has launched a sales pro... Read More