Sep 22, 2021 08:00 JST

Source: Mitsubishi Corporation

MC Reaches Agreement with Denbury on CO2 Transport and Storage Operations for Fuel Ammonia Production

TOKYO, Sep 22, 2021 - (JCN Newswire) - Mitsubishi Corporation ("MC") is pleased to announce that it has reached an agreement with the Texas-based independent energy company Denbury Inc ("Denbury") on the key term-sheet of CO2 transport and storage operations, via Denbury's wholly owned subsidiary Denbury Carbon Solutions LLC ("DCS"). The business is in line with MC's aim to commence production of fuel-use ammonia ("fuel ammonia") in the US Gulf of Mexico ("GoM").

MC aims to produce one million tons of fuel ammonia annually in the US GoM and export to the Japanese market towards the late 2020s. The estimated CO2 volume to be captured from the ammonia facility is maximum 1.8 million metric tons per annum. Under the terms of our agreement with Denbury, the captured CO2 will be either sequestered underground via Denbury's EOR(1) or CCS(2) which Denbury plans to develop in the future. The term sheet contemplates an initial period of 20 years, with the ability to extend further.

In the US GoM, Denbury owns unique capabilities and assets such as CO2 Green Pipeline system that ranks among the world's largest. The company has been active in the region for more than two decades, focusing on CO2-use EOR business. With international efforts to decarbonize picking up pace in recent years, Denbury unveiled its CCS business policy in January 2020 and launched DCS to focus on these operations.

Ammonia does not emit CO2 when burned, so expectations are that switching to its use in thermal power generation will help to reduce carbon emissions. Japan's Ministry of Economy, Trade and Industry convened a public-private council to promote the introduction of fuel ammonia, and in February 2020 the council announced the roadmap for use of ammonia to power thermal power plants. Assumption is that Japan's annual imports of ammonia will reach 3 million tons by 2030 and 30 million tons by 2050.

One of MC's goals is to introduce fuel ammonia in Japan. Through ammonia production and CCUS(3) businesses, we are taking steps to build the fuel ammonia supply chain. Furthermore, our efforts to balance energy supply stability and decarbonization meet to MC's overarching aim to achieve its three-value mission(4) and sustainable growth.

(1) Enhanced Oil Recovery
(2) Carbon dioxide Capture and Storage
(3) Carbon dioxide Capture, Utilization and Storage
(4) Simultaneous generation of economic, societal and environmental value

Source: Mitsubishi Corporation
Sectors: Energy

Copyright ©2022 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Related Press Release


Mitsubishi Corporation: Seven-Member Partnership Commits to Warehouse DX Initiative
July 01 2022 15:10 JST
 
MC and Maruha Nichiro Agree to Establish New Joint Venture in Salmon (land-based)
June 30 2022 17:23 JST
 
Murata and Mitsubishi Agree on a Cooperative Framework for Working Toward a Carbon-Neutral Society
June 24 2022 17:22 JST
 
Mitsubishi Corporation signs Participation Agreement with Sempra Infrastructure, TotalEnergies, Mitsui for Carbon Sequestration Project in Louisiana
May 24 2022 09:10 JST
 
Project-Finance Agreement Signed for MC-Hokuden Hydro Power Alliance
May 23 2022 10:15 JST
 
MC and Morgenrot Enter into Capital and Business Alliance
May 20 2022 19:19 JST
 
MC and Kurashiki City Sign Regional Development Agreement
May 20 2022 09:55 JST
 
Mitsubishi Corporation Invests in Climate-tech through Breakthrough Energy Catalyst
April 25 2022 10:46 JST
 
Joint Feasibility Study on the Commercialization of Sustainable Aviation Fuel
April 19 2022 10:37 JST
 
Toyobo and MC Agree to Establish New Joint Venture in Functional Materials
March 24 2022 16:39 JST
 
More Press release >>

Latest Press Release


More Latest Release >>