Energy infrastructure company Inter Pipeline, Calgary, said on May 11 that it is partnering with Itochu Corp. and Petronas Energy Canada Ltd. (GM Aug. 6, 2021) to evaluate the development of world-scale integrated blue ammonia and blue methanol production facilities.
“This project would be among the first of its kind in North America,” said Inter Pipeline President and CEO Brian Baker. “Once operational, these facilities would be at the forefront of diversifying Canada’s abundant supply of raw resources by converting them to value-added, energy transition products to supply growing global markets with low- or no-carbon fuel and energy products.”
The partners are expected to reach a final investment decision in early 2024. If sanctioned, construction would commence in late 2024, with a 2027 in-service date.
The proposed project would consist of two facilities based in Alberta, with early expectations – pending the results of the technical evaluation – of producing world-scale volumes of blue ammonia with blue methanol volumes. CO2 emitted during processing of both products would be sequestered underground permanently, and the resulting blue products would then be loaded onto rail cars for transport to an export facility before being shipped to global markets.
Last year, Itochu and Petronas said they were partnering with an unnamed Calgary-based midstream company to explore the feasibility of a US$1.3 billion, 1 million mt/y blue ammonia plant in Alberta. The plant was to export hydrogen from Alberta’s Industrial Heartland to Asian markets. The year-ago report did not include methanol.
Having recently completed the Heartland Petrochemical Complex, North America’s first integrated propane dehydrogenation and polypropylene plant, Inter Pipeline said it has proven it can successfully develop a petrochemical mega project.
In March, Inter Pipeline and Rockpoint Gas Storage, Calgary, announced that they have submitted a joint application as part of Alberta’s Energy’s Request for Full Project Proposals (RFPP) to develop a new carbon sequestration hub in Alberta’s Industrial Heartland. If approved and developed, the project would provide carbon storage capacity of more than 6 million mt/y, on an open access basis, to emitters in Alberta’s Industrial Heartland.