The Alaska Gasline Development Corporation (AGDC) announced an agreement between leading energy organizations to assess the potential to produce zero-carbon ammonia in the Cook Inlet region of Southcentral Alaska, according to a press release.
The parties –AGDC, Mitsubishi Corporation, TOYO Engineering Corporation and Hilcorp Alaska – have signed a memorandum of understanding to evaluate the commercial feasibility of utilizing North Slope natural gas delivered to Southcentral Alaska via the Alaska LNG Project to produce carbon-free ammonia.
The carbon dioxide generated from this process is able to be captured and sequestered in secure underground geologic formations, and Alaska’s Cook Inlet basin has been identified by scientists as having world-class carbon sequestration potential.
This assessment project will further define Cook Inlet’s sequestration potential and the economics for producing clean ammonia alongside LNG in Alaska. Ammonia emits no carbon dioxide when burned to produce energy, is rich in hydrogen, and is easier to transport than hydrogen. Ammonia is central to the zero-carbon energy strategies of nations across the Pacific Rim, including goals by Japan and Korea to become carbon neutral by 2050.
Japan plans to grow ammonia use in energy production to three million tons per year by 2030, up from zero today. In addition to Cook Inlet’s carbon sequestration capabilities, the parties factored other unique Alaska advantages into the decision to initiate the ammonia assessment. Round-trip tanker transport from Alaska to key Asian markets is more than 12,000 miles shorter than from the U.S. Gulf Coast, reducing costs and shipping emissions.
