Inter Pipeline Ltd. announced it is partnering with ITOCHU Corporation (ITOCHU) and PETRONAS Energy Canada Ltd. (PETRONAS Canada) ("the Partners") to evaluate the development of world-scale integrated blue ammonia and blue methanol production facilities. If sanctioned, this project would represent an exciting opportunity for Canada to play a key role in global efforts to establish a low-carbon economy through the production of thousands of metric tonnes per day of blue ammonia and blue methanol. Blue ammonia is an efficient method of transporting hydrogen, a much sought-after energy source that contains no carbon.

Blue methanol serves as a versatile building block for countless everyday products, including adhesives and construction materials and is being evaluated for use as a low-carbon fuel for industries such as shipping. The feasibility study for this project includes the evaluation of plans to minimize emissions through integration of the facilities, and to permanently sequester CO2 emitted during operations in underground storage. Economic and certain access to adequate pore space for carbon emissions from this project is an essential part of the feasibility planning.

This opportunity is dependent on a thorough risk assessment to be conducted by Inter Pipeline, ITOCHU and PETRONAS Canada, and a commercial arrangement between the Partners. The Partners are expected to reach a final investment decision in early 2024. If sanctioned, construction would commence in late 2024 with a 2027 in-service date.

The proposed project would consist of two facilities based in Alberta, with early expectations, pending the results of the technical evaluation, of producing world-scale volumes of blue ammonia with blue methanol volumes. CO2 emitted during processing of both products would be sequestered underground permanently and the resulting blue products would then be loaded onto rail cars for transport to an export facility before being shipped to global markets.