The state-owned Malaysian oil producer Petronas is set to join forces with the founders of renewable energy company Greenko Energy Holdings, and GIC, the sovereign wealth fund of Singapore.
This comes with plans to invest a collective $2 billion in a new platform for producing green ammonia, green hydrogen and other green molecules.
Petronas, which also makes lubricants like commercial vehicle oil and agricultural oil, is thought to be contributing $1.5–1.7 billion of the investment, according to sources cited by MSN.
The money will be invested in projects aimed at producing green ammonia at five sites, at a total rate of 5-million tonnes per annum. At least four planned megaprojects will provide the renewable energy to produce the ammonia at the sites.
While spokespersons for Petronas and Greenko’s founders were not available for comment, an energy consultant based in Hong Kong said to MSN:
“Greenko is looking to industrialise proven technologies like storage, electrolysers to build unsubsidised, low-cost green hydrogen at $3 per kg produced with round-the-clock renewable power. In the US, the IRA Bill gives $3 per kg subsidy. And as electrolyser, solar panel prices drop further, the hydrogen price will drop further.”
Ammonia is used as a fertiliser in agriculture, but its production currently requires considerable energy, leading to carbon dioxide emissions. The process is also sensitive to spikes in energy prices, as seen after Russia’s invasion of Ukraine.
Green ammonia can also be easily stored in bulk in large, refrigerated tanks, so it has considerable promise as a form of energy storage and a zero-carbon fuel.