INPEX Enters Agreement with ADNOC Towards Clean Ammonia Supply Chain Demonstration

August 30, 2021

INPEX CORPORATION (INPEX) announced it has signed a sales and purchase agreement with the Abu Dhabi National Oil Company (ADNOC) concerning the application of clean ammonia for a demonstration supply chain linking the United Arab Emirates(UAE) and Japan.

The clean ammonia purchased from ADNOC will be produced by ADNOC using natural gas a tan existing ammonia plant. This clean ammonia will have a reduced carbon footprint where in most of the CO2 emitted from the production of the ammonia will be sequestered at Abu Dhabion shore oil fields in which INPEX has a participating interest. The clean ammonia will be transported from Abu Dhabi to Japan in an ISO tank container1 and is scheduled to be utilized in energy fields including a demonstration as a power generation fuel. Through this exercise, INPEX plans to work closely with ADNOC to implement a demonstration supply chain extending from the production of clean ammonia to its end use.

Ammonia is advantageous as a mode of storage and transportation of hydrogen and emits no CO2 when combusted. It is therefore expected to be utilized as fuel for power generation and marine transportation in line with global movements toward the realization of a net zero carbon society. In addition to implementing the demonstration supply chain, INPEX plans to explore the commercial potential of a clean ammonia production business in Abu Dhabi in the UAE in cooperation with ADNOC, JERA Co., Inc. (JERA) and the Japan Oil, Gas and Metals National Corporation (JOGMEC), as announced on July 8, 2021.

As outlined in its “Business Development Strategy – Towards a Net Zero Carbon Society by 2050” announced in January 2021, INPEX envisions the advent of a hydrogen era and aims to expand its hydrogen and ammonia business. In close cooperation with ADNOC, with which it has partnered for almost 50 years, as well as the Japanese government and customers, INPEX aims to build a hydrogen and ammonia supply chain linking Japan with Abu Dhabi, one of its core business areas.

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