In Japan, a group of investors interested in ammonia said last year that the fuel can meet 1.5% of electricity demand in 2030 and 10% in 2040.
Last week, the Egyptian state-owned gas company (EGAS) and the Egyptian Petrochemicals Holding signed a memorandum of understanding with Toyota Tsusho, the trading arm of Japanese automaker Toyota to develop blue ammonia projects.
Blue ammonia is made from nitrogen and blue hydrogen derived from natural gas feedstocks, the carbon dioxide by-product of hydrogen production being captured and stored. This fuel is attracting more and more interest from Japan’s industrial community, which sees it as an excellent opportunity to generate clean electricity and power the industrial sector. Scientists say it is cheaper to produce than hydrogen and more easily transportable.
Under the terms of the agreement, a feasibility study will be conducted to decide on the best carbon capture, use and storage (CCUS) opportunities in Egypt. This, to produce blue ammonia using the latest Japanese technology. The study will be completed by the end of the first trimester of next year.
This cooperation, if confirmed, will be beneficial for both parties. Egypt will see some of its gas currently flared, recovered and processed, which will reduce its carbon emissions and strengthen its efforts for decarbonization. For the Empire of the Rising Sun, the production of blue ammonia in Egypt will bolster efforts towards carbon neutrality.