By Ketki Saxena
Investing.com -- Calgary-based company Pembina Pipeline (TSX:PPL) has announced its partnership with Japanese conglomerate Marubeni Corporation. The collaboration aims at establishing an ammonia supply chain catering primarily to the growing demands of Asian markets.
The joint venture includes the construction of low-carbon hydrogen and ammonia production facilities in close proximity to Fort Saskatchewan, Alberta. By leveraging existing infrastructure as well as regional natural gas supplies, both companies plan on producing hydrogen and utilizing ammonia as a carrier for it.
The proposed project boasts an impressive design capacity of up to 185 kilotonnes per year for hydrogen production. This would translate into approximately one million tonnes of ammonia annually, which is planned to be transported via rail towards the west coast.
Addressing environmental concerns, Pembina Pipeline intends on implementing carbon capture and storage technology within their operations. This approach will significantly reduce the amount of carbon emissions released during the process.
Beyond this initiative, there are plans for further expansion by potentially creating a larger low-carbon complex anchored by this project.