Woodside Energy Ltd., IHI Corporation and Marubeni Corporation have signed a Heads of Agreement to investigate the production and export of green ammonia produced from renewable hydro power in the Australian state of Tasmania.

Green ammonia, produced from green hydrogen, is a zero-emission fuel which can be used to decarbonize coal-fired power production, among other applications.

Initially, green ammonia would be produced at a small-scale hydrogen electrolysis plant. Woodside is exploring options for production in the Bell Bay region in northeast Tasmania. The capacity of the proposed plant could eventually be scaled up to as much as 250 MW to produce green hydrogen as feedstock for green ammonia exports.

The initial phase of the partners’ studies will focus on deepening their understanding of Japanese and Asian ammonia markets, with technical and commercial evaluations underway.

Japan is stepping up its efforts to capture opportunities for green hydrogen and ammonia in order to deliver its target of net zero carbon emissions by 2050. The parties aim to continue building on the green ammonia supply chain between Australia and Japan.