Japanese oil and gas developer Inpex Corp. will consider building an ammonia plant in the US, as it seeks to benefit from green subsidies and lift supply of a fuel intended to help curb emissions.
(Bloomberg) — Japanese oil and gas developer Inpex Corp.
will consider building an ammonia plant in the US, as it seeks to benefit from green subsidies and lift supply of a fuel intended to help curb emissions.
The introduction of the Inflation Reduction Act in the US, which offers generous subsidies for low-emissions fuels and climate technologies like carbon capture, “really is a game changer in the area of hydrogen and ammonia, and maybe direct air capture,” Inpex President Takayuki Ueda said Wednesday in an interview in Singapore.
“We’re working actively to make some investments in the US in the area of hydrogen, ammonia” and carbon capture, Ueda said.
Read more: How World Fell Into a Subsidy Race for Climate Goals: QuickTake
Inpex is also considering constructing an ammonia plant in Abu Dhabi, according to Ueda.
The producer envisages ammonia produced overseas being shipped to Japan to be used for co-firing — which uses ammonia or hydrogen to replace some fossil fuels at traditional power plants — and as fuel for shipping.
Abu Dhabi National Oil Co.
in 2021 signed an agreement with Inpex and other Japanese entities to explore potential production in the UAE of blue ammonia — created in a process which converts hydrocarbons into hydrogen and then ammonia.
Inpex is closely monitoring developments in Australia, where the government has recently imposed tougher pollution controls, put a cap on some fuel prices and threatened to limit exports to prioritize domestic needs, Ueda said.
The company will consider those policy changes as it makes a decision over potentially adding a third train to its Ichthys liquefied natural gas plant in Australia from around 2030, he said.
Read more: Major LNG Exporter Flags ‘Concern’ Over Australia’s Gas Policy
“Generally speaking, we have some concerns about the business environment,” Ueda said.
“We’re very much hopeful that the Australian government will also deal with our concerns.”
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