ConocoPhillips, one of the biggest independent oil producers in the United States, will supply natural gas and oversee a carbon capture and storage facility for a proposed US hydrogen gas project that will be developed in collaboration with JERA, Japan’s biggest utility company.

Natural gas producers have a new market opportunity thanks to the agreement to supply gas for hydrogen, a potentially clean fuel, for the generation of power. ConocoPhillips is one of several businesses that have long-term supply agreements in place with LNG producers who provide utilities.

According to JERA, the Japanese gas and electricity company that oversees the plant, a feasibility study to evaluate the hydrogen project might be finished by the end of the year. It seeks to create ammonia that can be exported and sold in the United States, Europe, and Asia by producing hydrogen from natural gas.

According to Steven Winn, JERA Americas chief executive, the plant could be in operation within five to eight years at a site along the US Gulf Coast.

Mr Winn said: “JERA and ConocoPhillips will be a low-cost ammonia supplier to domestic and international markets.”

The oil and gas company has announced investments in multibillion dollar LNG projects in Qatar and the United States. Additionally, Sempra, a developer of an LNG project, is investigating a carbon capture facility for it.

JERA Americas, a US division of JERA, stated that they, with Uniper SE of Germany and ConocoPhillips, want initially to generate two million tonnes of ammonia annually, with the potential to increase to eight mtpa. Normally used to create fertilisers, ammonia also offers a low-carbon fuel that can be burned to create energy.

According to a spokeswoman, JERA is looking at numerous locations along the Gulf Coast for the hydrogen ammonia and CCS plant, which will be partially powered by JERA’s US renewable energy operations.

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(Source: Tank News Int., Sept. 15-2022)