This week in energy: ammonia supply, CCUS value chains and cow manure becomes fuel

Each week, the Asia Natural Gas and Energy Association (ANGEA) compiles stories from the energy world that have caught our eye.   

Given the region in which we operate – and our purpose – this collection of content is largely Asia-focussed. But we also look further afield, knowing that developments, trends and technology from around the world also have an impact across our region.   

Here’s what has resonated over the past week. 

Another important step towards ammonia co-firing
Pleasing progress for ANGEA member company JERA with the signing of a sales and purchase agreement with Mitsui for the supply of ammonia at the Hekinan Thermal Power Station, Japan’s largest coal-fired plant. 

Hekinan will be host to a demonstration plant that will showcase the capacity of ammonia to reduce CO2 emissions at thermal plants when co-fired with coal. The demonstration will involve a 20 per cent ammonia mix but there is the potential for a 50-50 split in the 2030s. 

Read more: https://bit.ly/4301f5E  

Major corporations collaborate on CCUS value chain
Carbon capture, utilisation and storage (CCUS) value chains are still in their relative infancy in Asia Pacific but they are going to be a major part of the energy transition landscape for decades to come. 

In encouraging news, ANGEA member JGC is collaborating with JGC, Japan Petroleum Exploration Co, K Line and JFE Steel Corporation to investigate the potential of such a value chain, originating in Japan. The work will align with the ongoing CCS study being performed by Japex, JGC and K Line with Petronas around storage possibilities in Malaysia. 

Read more: https://bit.ly/43bdc93

 ANGEA ventures into Korea
Last week marked ANGEA’s first on-the-ground engagement in the Republic of Korea, with CEO Paul Everingham and Senior Advisor Neil Theobald gaining a great deal of insight from the trip.

We’re grateful to the range of government and industry stakeholders who took the time to meet, including the Ministry of Trade, Industry and Energy (MOTIE), KOGAS, Hyundai LNG Shipping and SK Group.

The Quarterly Q&A, with Paul Everingham
In a new addition to ANGEA’s website offerings, CEO Paul Everingham will provide a quarterly update on some of the biggest questions being posed in the Asian and global energy landscapes. 

June’s first instalment sees Paul outline some key challenges and opportunities in energy transition, wrap up ANGEA’s 2023 to date and reflect on what is to come in the remainder of 2023. 

Read more: https://bit.ly/3NiV6vC 

ANGEA in the press
Many thanks to S&P Global Commodity Insights for publishing a wide-ranging and excellent interview this week with CEO Paul Everingham. 

Paul explained the major findings of the recent Rystad Energy Study on Energy Security in Southeast Asia, including the need for more global gas supply and for countries to seek out diverse sources of supply.

Other topics covered include the Indo Pacific Strategic Energy Initiative Act recently introduced to the US Congress and developments in CCUS throughout Asia.

Read more: https://bit.ly/3qUm59f  

Important developments on the CCUS front
Regulatory and legal frameworks around the CCUS won’t attract headlines like the technology itself – but they are just as important to its success. 

With that in mind, it was very pleasing to see legislation read into Australian Parliament Leglislation, which will clear the path for the country to regulate both the import and export of CO2 for sub-seabed sequestration.

The legislation, giving effect to amendments to the London Protocol agreed upon in 2009 and 2013, has great potential to support Asian energy transition – given the widespread use of carbon capture and storage that will be required to achieve net zero throughout the region and Australia’s known geological suitability for sequestration.

Read more: https://bit.ly/3NVhdKp 

Meanwhile, Japan is reported to have taken a draft set of common rules around carbon capture to the weekend meeting of the Asia Zero Emissions Community (AZEC) in Indonesia. 

Common rules across the region would help accelerate the development of carbon capture and storage value chains in Asia and the new industries that will accompany them. 

Read more: https://s.nikkei.com/46lvPtl  

Another important development in Japan saw the Japan Organization for Metals and Energy Security (JOGMEC) publish the first version of its guidelines for CO2-enhanced oil recovery, a key technology to support energy transition.

Read more: https://bit.ly/3NW9hZn  

Continued cross-country cooperation on energy
The announcement of MOUs and partnerships between Asian countries on energy matters has continued apace this week. 

Singapore and Qatar will work together together on strengthening LNG supply chains and exchanging knowledge on carbon capture and storage (Full story: https://bit.ly/3qZPtLD ), while Vietnam and the Republic of Korea will collaborate on the development of natural gas and LNG power projects. 

The Vietnam-Korea agreement is especially significant as it involves major companies in both countries and aligns with the growing role of gas outlined by Vietnam’s recently adopted National Power Development Plan 8. 

Read more: https://s.nikkei.com/3pekpHt  

New LNG icon set to take to the seas
There was a fresh, high-profile demonstration of energy transition in the maritime industry this week, with the LNG-powered Icon of the Seas completing its sea trials. 

The luxury liner will be the world’s largest cruise ship by gross tonnage when it enters service early next year and its ability to run on LNG is among a number of emissions-reducing innovations, including the use of fuel cell technology to run air-conditioning and other onboard electrics. 

Read more: https://bit.ly/3XonKjD 

From cattle waste to marine power
A very interesting announcement this week around fuel innovation, with Mitsui OSK Lines announcing the successful trial of liquefied biomethane (LBM) derived from cattle manure to power the LNG-fuelled Ise Mirai. It marks Japan’s first use of carbon-neutral LBM derived from biomass.

The employment of LNG in preference to conventional fuel has already been projected to reduce maritime emissions by up to 25 per cent but the addition of an LBM can further decarbonise shipping. 

JERA was also a cooperating partner in the trial.

Read more: https://bit.ly/42Uid5I  

 ANGEA is an industry association representing LNG and natural gas producers, energy buyers, suppliers and companies in APAC. Based in Singapore, it works in partnership with governments and societies across the region to deliver reliable and secure energy solutions that achieve national economic, energy security, social and environmental objectives and meet global climate goals.

Main image by Andrey Metelev on Unsplash