Perth-based Wesfarmers Ltd. has partnered up with Waitsia gas field operator Mitsui and the Japan Oil, Gas, and Metals Corp. (JOGMEC) to investigate the export of low-carbon ammonia from Western Australia.
The parties have signed a Memorandum of Understanding and are determining the details of a joint feasibility study, according to a report by the Sydney Morning Herald, citing Wesfarmers Chemicals, Energy, and Fertilisers (WesCEF) Managing Director Ian Hanson.
Mitsui owns a 50 percent stake in the Waitsia gas field in Western Australia’s Mid-West region, about 340 km north of Perth. The report calculates Mitsui’s share of gas from the field’s stage two development that is due to start flowing in late 2023 is sufficient for the production of 1 million mt/y of ammonia.
According to the report, the proposed ammonia export project will need an A$1 billion-plus (approximately US$726 million at current exchange rates) processing plant and large-scale carbon storage.
The Wesfarmers, Mitsui, JOGMEC consortium’s pursuit of a gas-based initiative contrasts with other ongoing Australian developments for green hydrogen and green ammonia production. These initiatives include Yara International ASA’s green ammonia project in the Pilbara, based on a renewable hydrogen plant Yara is building in partnership with French energy and services major ENGIE (GM Sept. 24, p. 1).
Fortescue Future Industries Pty, Ltd. (FFI), a unit of Perth-based iron ore major Fortescue Metals Group, is also investigating the development of a green ammonia plant at the Bell Bay Industrial Precinct in northern Tasmania (GM Nov. 20, 2020), and is studying the establishment of green ammonia supply chains between Australia and Japan (GM May 21, p. 34). Sydney-based Origin Energy is also pursuing green ammonia ambitions, and is studying the feasibility into building an export scale green hydrogen and ammonia plant, also at Bell Bay.
The Wesfarmers, Mitsui, JOGMEC consortium is understood to be targeting to substantially reduce, rather than eliminate, greenhouse gas emissions. An unnamed Mitsui spokesperson cited by the report said the three partners will work with customers, the West Australia government, and the Mid-West community “to determine a credible path to decarbonisation.”
JOGMEC is a Japanese government body and supports Japan’s oil and gas companies. Japan early this year set a target to use 3 million mt/y of ammonia for fuel by 2030.
WesCEF is pursuing an expansion of its ammonia production at its Kwinana site in Western Australia separately to its agreement with Mitsui and JOGMEC.
WesCEF told Green Markets in May it was in the early exploratory stage for the expansion project. Its current ammonia plant at Kwinana produces 250,000 mt/y. However, WesCEF’s demand for ammonia is approximately double this, necessitating the need to import ammonia to cover the shortfall, the company spokesperson said.
The spokesperson said if an expansion was undertaken, it would mean the WesCEF business would become more self-sufficient and would not have to rely on ammonia imports.
The feasibility study into the expansion, which is targeted for completion around mid-2022, includes options to investigate new technologies, according to the spokesperson.
In addition to the production of fertilizers, WesCEF uses ammonia to manufacture explosive-grade ammonium nitrate and sodium cyanide. The latter product is mainly used for gold processing.