Marubeni Concludes Agreement with Pembina Pipeline Corporation to Co-develop a Low-Carbon Ammonia Supply Chain from Western Canada to Asia

May 30, 2023
Marubeni Corporation

Marubeni Corporation (hereinafter, “Marubeni”) is pleased to announce the conclusion of a Memorandum of Agreement (MOA) with Pembina Pipeline Corporation (hereinafter, “Pembina”), to co-develop a low-carbon ammonia supply chain from Western Canada to Japan and other Asian markets (hereinafter, the “Project”). The Project includes the joint development, on a 50/50 basis, of a global-scale, low-carbon hydrogen and ammonia production facility (hereinafter, the “Facility”) to be sited on Pembina-owned lands adjacent to its Redwater Fractionation Complex in the Alberta Industrial Heartland near Fort Saskatchewan, Alberta.

MOA Signing Ceremony MOA Signing Ceremony

Top row, left to right,
H.E. Mr. Ian G McKay, Ambassador of Canada to Japan; Mr. Daylin Breen, Director, Alberta Japan Office
Second row, left to right:
Mr. Stuart Taylor, Senior Vice President & Corporate Development Officer of Pembina Pipeline Corporation;
Yoshiaki Yokota, Managing Executive Officer, Chief Executive Officer, Energy & Infrastructure Solution Group of Marubeni Corporation

Initial feasibility studies have been completed, and the Facility is anticipated to have a production capacity of one million tons per year of low-carbon ammonia. The Facility will utilize innovative technology to capture associated CO2 emissions using CCS/CCU*1. The low-carbon ammonia will be transported via rail to Canada’s west coast and then shipped to Japan and other Asian markets. The Facility will leverage access to existing utility infrastructure, as well as benefit from Alberta’s abundant natural gas supply, globally leading geological initiatives for CO2 sequestration, and the advantage of its proximity to Asian markets. 

*1 Technology to capture and store (CCS: Carbon dioxide Capture and Storage) or effectively utilize (CCU: Carbon dioxide Capture and Utilization) CO2 emitted from factories and power plants.

Under the MOA, Pembina and Marubeni will focus on completing work critical to the development of the Project, including preliminary Front End Engineering Design (pre-FEED), engagement with governments in Canada and Japan, and commercial activities. Currently, pre-FEED work is expected to be completed by early 2024, with a potential final investment decision in the second half 2025, targeting commencement of operations in 2028.

Site Location Site Location

Source: Alberta Industrial Heartland Association (AIHA)

Through the activities of the Project, Pembina and Marubeni will become the first mover to establish a large-scale low-carbon ammonia supply chain in Canada with access to Japanese and Canadian government support and the opportunity to contribute to energy security and a low carbon society.

Quotes attributable to Marubeni:
Pembina has a long history and strong reputation as a leading Canadian energy infrastructure provider. We are honored to be working together as partners in the establishment of a low-carbon fuel supply chain from Canada to Japan. The Project will benefit from Canada's abundant natural gas supply, with the advantage of west coast shipping access to Asia, and a growing carbon capture and sequestration industry. The establishment of a large-scale hydrogen and ammonia supply chain will also importantly support the decarbonization efforts of both Japan and Canada.
Yoshiaki Yokota, Chief Executive Officer, Energy & Infrastructure Solution Group 

Quotes attributable to Pembina:
"The project represents a transformative opportunity that is highly aligned with Pembina's strategic priorities, including supporting global decarbonization efforts by exporting low-carbon energy derived from natural gas produced in Western Canada,” Mr. Stuart Taylor, Pembina's Senior Vice President & Corporate Development Officer. 
The Project is an example of Pembina’s ability to leverage its existing asset base and core competencies to develop new integrated value chains, including carbon capture, utilization and storage (CCUS) and low-carbon energy such as hydrogen, and ammonia as a hydrogen carrier and fuel source. Marubeni has deep expertise in areas critical to success of the Project and we are delighted to be working with them to facilitate the global movement towards greater use of low-carbon ammonia to support Japan's decarbonization strategy.