JERA Americas, a subsidiary of the Japanese energy company JERA, has signed a Heads of Agreement with the German utility Uniper and the US oil and gas company ConocoPhillips for the sale to Uniper of low carbon hydrogen/ammonia produced in the United States, at a proposed facility on the Gulf of Mexico Coast. The announcement builds on a Memorandum of Understanding the parties signed in September 2022 to assess the potential for developing ammonia production facilities in the region.
The project would have an initial production capacity of 2 Mt/year of ammonia with potential for expansion in the future. Commercial production on the project is expected to start by the end of the 2020 decade. ConocoPhillips and JERA Americas plan to jointly develop the production facility project, which will supply low-carbon fuel to markets in the US, Europe and Asia. The project will also include evaluation and development of carbon capture and storage (CCS) facilities. The proposed ammonia facility would produce hydrogen and convert it into clean ammonia for transport to markets abroad.