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Marubeni and ExxonMobil Join Forces to Unlock Low-Carbon Energy Potential with Ammonia Deal
In a move that signals a significant step forward in the global energy transition, Marubeni Corporation and ExxonMobil have announced an agreement to explore and potentially establish a large-scale, low-carbon ammonia production and supply chain. This collaboration highlights the growing importance of ammonia as a future fuel and energy carrier, especially in decarbonizing hard-to-abate sectors.
The agreement, as outlined in Marubeni’s press release, focuses on exploring opportunities across the entire ammonia value chain. This means the companies will investigate possibilities for producing ammonia using low-carbon methods (like carbon capture and storage or using renewable energy), transporting it efficiently, and ultimately using it to generate power or as a feedstock in various industrial processes.
Why is this significant?
Ammonia (NH3), a compound of nitrogen and hydrogen, has traditionally been used as a key ingredient in fertilizers. However, it’s increasingly being recognized for its potential to play a pivotal role in a lower-carbon future. Here’s why:
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Energy Carrier: Ammonia can be burned directly in power plants or used in fuel cells to generate electricity. This is particularly attractive for regions with limited renewable energy resources or that are looking to diversify their energy sources.
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Hydrogen Transport: Ammonia can be used to transport hydrogen (H2). Converting hydrogen to ammonia is an easier way to store and move it compared to liquid or compressed hydrogen. The ammonia can then be “cracked” back into hydrogen at its destination for use in fuel cells or other applications.
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Decarbonizing Industries: Several industries, such as shipping and certain manufacturing processes, are difficult to electrify directly. Low-carbon ammonia offers a potential pathway to reduce emissions in these sectors. The shipping industry, in particular, is showing growing interest in ammonia as a marine fuel.
What Does “Low-Carbon” Ammonia Mean?
The key differentiator here is the production process. Conventional ammonia production is energy-intensive and relies heavily on fossil fuels, resulting in significant greenhouse gas emissions. “Low-carbon” ammonia aims to drastically reduce these emissions through different approaches:
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Blue Ammonia: This involves using natural gas as the primary feedstock but capturing the carbon dioxide (CO2) emitted during the production process and storing it underground (Carbon Capture and Storage, or CCS).
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Green Ammonia: This is produced using renewable energy sources (like solar or wind) to power the electrolysis of water, producing hydrogen that is then combined with nitrogen from the air to create ammonia. This is generally considered the most environmentally friendly option.
While the press release doesn’t specify which methods Marubeni and ExxonMobil will prioritize, their collaboration signals a commitment to developing more sustainable ammonia production technologies.
The Roles of Marubeni and ExxonMobil
This collaboration brings together the strengths of two global giants:
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Marubeni: Marubeni is a large Japanese trading and investment company with extensive experience in the energy sector, infrastructure development, and global supply chains. Their expertise in navigating complex international projects and their strong relationships with energy consumers will be valuable in establishing the ammonia supply chain.
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ExxonMobil: ExxonMobil is one of the world’s largest publicly traded international oil and gas companies. They have significant expertise in energy production, processing, and distribution. Their knowledge of large-scale project management and their ongoing investments in carbon capture and storage technologies make them a strong partner in developing low-carbon ammonia solutions.
What’s Next?
The agreement between Marubeni and ExxonMobil is a preliminary step. The companies will now undertake feasibility studies to assess the technical and economic viability of various low-carbon ammonia production and supply chain options. If these studies are successful, they may then move forward with developing actual projects.
This collaboration underscores the growing recognition of ammonia’s potential as a crucial element in the energy transition. While challenges remain in scaling up production and developing the necessary infrastructure, this partnership between Marubeni and ExxonMobil represents a promising move towards a cleaner and more sustainable energy future. The success of this endeavor will depend on further technological advancements, supportive government policies, and the continued commitment of industry players to decarbonization goals.
Marubeni and ExxonMobil’s low-carbon ammonia deal marks major step in unleashing new energy supply
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This is a new news item from search.marubeni.com: “Marubeni and ExxonMobil’s low-carbon ammonia deal marks major step in unleashing new energy supply”. Please write a detailed article about this news, including related information, in a gentle tone. Please answer in English.