Giant Swiss methanol producer and tanker owner Proman is making a move into blue ammonia.
It has signed a cooperation deal with Japan’s Mitsubishi Corp to explore building a “world-scale” ultra-low-carbon production facility in Lake Charles, Louisiana.
This project could turn out 1.2m tonnes per year of clean ammonia by incorporating state-of-the-art carbon capture and sequestration technology, Proman said.
Construction would take place at Proman’s existing site in Lake Charles, next to its new methanol plant, which uses natural gas as a feedstock.
This is also under development.
Proman chief executive David Cassidy said: “We are committed to expanding our global production to drive forward ammonia’s critical role as a fertiliser, fuel and decarbonised future energy source.
“Once completed, this state-of-the-art plant with industry-leading carbon capture technology will be a major step towards meeting the growing demand for ammonia as a clean fuel. We are honoured to be partnering with Mitsubishi on this.”
The largest part of the offtake will be exported on vessels to Japan, where it will be used to reduce emissions from coal-fired power plants, in line with national strategy to increase domestic ammonia consumption to help achieve its decarbonisation goals.
But shipowners will also be looking to secure supplies for next-generation ships.
In August, Proman formed a new strategic partnership to move into biofuels, agreeing a deal with Nasdaq-listed US company Origin Materials.
The partnership will explore the production and global distribution of low-carbon biofuels.
Proman and Swedish joint venture partner Stena Bulk have ordered six methanol-fuelled 50,000-dwt vessels in China.
The first four are in operation — three owned by the joint venture and one by Proman — and the final two are due at the end of this year and the start of 2024, for Proman’s account.
