In a significant step towards a greener future, JERA Americas, ConocoPhillips, and Uniper SE have recently signed a heads of agreement framework for a sales contract, solidifying their commitment to source low carbon hydrogen/ammonia supply from the U.S. Gulf Coast. This collaboration aims to support the global energy transition by providing a pathway to lower emissions and reducing CO2 emissions in the U.S., Germany, Japan, and other regions across Asia and Europe.
The project’s primary focus is on achieving verifiable low carbon intensity by leveraging the combined resources and project development expertise of ConocoPhillips and JERA Americas. Both companies aspire to become low-cost and low carbon intensity hydrogen producers, and they possess the necessary scale to achieve these goals. As the core customer, Uniper values the aim to produce a verified, low-carbon product, emphasizing the pivotal role of sustainability in the project.
The chosen location for the project, the U.S. Gulf Coast, offers several advantages. It boasts a skilled workforce, abundant natural gas reserves, deep water ports, and suitable geology for carbon capture and sequestration. Additionally, the region benefits from supportive federal tax policies, making it an ideal location to produce low carbon fuel to support the energy transition efforts in America, Europe, and Asia.
The non-binding heads of agreement signifies a significant milestone in the development of a low-carbon ammonia production facility. The initial production capacity is projected to be 2 MTPA of low-carbon ammonia, paving the way for potential expansion in the future. ConocoPhillips and JERA Americas, a wholly owned subsidiary of JERA Co., Inc., plan to collaboratively develop the production facility project, which aims to accelerate the production and supply of low-carbon fuel to markets in the U.S., Europe, Japan, and greater Asia.
Furthermore, the project includes the evaluation and development of carbon capture and sequestration facilities, highlighting the commitment to sustainable practices throughout the entire production process. The proposed ammonia production facility will produce hydrogen and convert it into clean ammonia, which will be transported to markets abroad. The target is to achieve first commercial deliveries by the end of the decade, ensuring a timely and seamless transition to low-carbon energy sources.
Steven O’Rourke, CEO of JERA Americas, expressed his enthusiasm for the progress made, stating that the contracting progress with Uniper SE as a core customer for their low carbon hydrogen/ammonia project is a significant achievement. Collaboration with their development partner, ConocoPhillips, builds upon the sales MOU signed last year. O’Rourke emphasized the urgency of rapid global-scale low carbon hydrogen/ammonia production to realize the collective global energy transition initiatives.
Carsten Poppinga, chief commercial officer for Uniper SE, emphasized the critical nature of projects like this one in responsibly moving towards greener feedstocks while ensuring a secure supply for customers. Developing production capabilities now to meet the future demand for clean hydrogen and ammonia is vital for accelerating the energy transition globally. Poppinga highlighted the project’s potential to create real opportunities in this regard and expressed Uniper’s delight in being associated with it.
Additionally, Uniper has announced separate plans for “Green Wilhelmshaven,” a project that combines hydrogen imports and production to create a common European hydrogen market. This project has been submitted to the German Federal Ministry of Economics as an Important Project of Common European Interest (IPCEI), further demonstrating Uniper’s commitment to integrated projects along the entire hydrogen value chain.
The collaboration between JERA Americas, ConocoPhillips, and Uniper SE marks a significant milestone in the journey towards a sustainable energy future. By leveraging their expertise, resources, and commitment to low carbon intensity, these companies are driving the production of low-carbon hydrogen and ammonia, providing a cleaner energy alternative to markets worldwide. This partnership is a testament to the collective effort required to achieve a greener, more sustainable future for all.
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