The project involves ammonia production at a Mitsubishi project commencing from a Gulf Coast facility in the latter half of the decade. Mitsubishi aims to introduce the ammonia to the Japanese market.
The project is targeted to produce an ammonia volume of around 1 million metric tons per annum (mmtpa) with associated CO2 emissions of around 1.8 mmtpa and the potential for additional ammonia projects to follow.
Denbury will transport and sequester all of the CO2 captured at Mitsubishi’s ammonia facilities. The captured CO2 may be utilized by Denbury in its enhanced oil recovery operations or, alternatively, for storage in other geologic sequestrations sites.
The term sheet contemplates an initial period of 20 years, with the ability to extend further. Total volumes under the arrangement could surpass 50 million metric tons of CO2.
Mitsubishi’s ammonia facilities are planned for construction in close proximity to Denbury’s CO2 Green Pipeline system.