Saudi oil giant Aramco and Japanese petroleum and refining corporation ENEOS have signed a memorandum of understanding (MOU) to assess opportunities for blue hydrogen and ammonia supply chains.

ENEOS said the MOU aims to “support the establishment of a low-carbon society through promoting widespread blue hydrogen and blue ammonia supply chains.”

The two firms will carry out feasibility studies into the production of blue hydrogen and blue ammonia in Saudi Arabia from hydrocarbons such as natural gas and LPG.

The term ‘blue’ refers to the fact that the CO2 emissions from the production process will be captured and stored.

Japan currently imports more than a third of its oil from Saudi Arabia, and ENEOS said the MOU is based on Aramco’s potential as a long-term supplier of blue hydrogen and blue ammonia.

Once the feasibility studies are complete, ENEOS will also look at establishing hydrogen import and supply networks in Japan.

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29th March 2021