Japanese trading and investment conglomerate Marubeni Corp. has partnered with Canada-based Pembina Pipeline Corp. to develop a low-carbon ammonia facility in Alberta.

The companies have signed a memorandum of agreement, aiming to establish a low-carbon ammonia supply chain from Western Canada to Japan and other Asian markets, Pembina said May 30.

Located near Pembina’s Redwater Complex, the facility will develop ammonia from blue hydrogen. The facility will be designed to produce up to 185 kilotonnes per annum, which will be converted to about 1 million tonnes of ammonia per year, according to a news release. Plans are to transport the ammonia by rail to Canada’s West Coast for shipping to Japan and other Asian markets.

Marubeni is expected to contract offtake from the facility, Pembina said.

“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,” Stu Taylor, senior vice president and corporate development officer for Pembina, said in a news release.

The agreement focuses on completing preliminary FEED by early 2024, engaging with stakeholders and working on commercial activities. Initial feasibility studies have been completed, Pembina said.

The company said the project could also serve as an anchor development for a low-carbon complex it envisions building on undeveloped land in the Alberta Industrial Heartland.

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