Wesfarmers takes a shine to carbon storage

Emissions from the existing ammonia plant have already been cut by about 700,000 tonnes of CO2 equivalent a year by catalysts that turn nitrous oxide – the third-most important greenhouse gas after carbon dioxide and methane – into harmless nitrogen and oxygen.

“Carbon capture and storage is probably the most obvious answer to dealing with carbon dioxide emissions,” Hansen said.

The chemical reaction to produce ammonia produces most of the emissions, and this pure stream of carbon dioxide is easier to capture and store than carbon dioxide from burning fossil fuels.

WesCEF’s product would be classified as blue ammonia if a significant amount of its emissions are dealt with by CCS.

Hansen said WesCEF is discussing with other industries in Kwinana pooling their emissions to support a pipeline to a carbon storage site.

Loading

The favoured location is Dongara, 350 kilometres north of Perth, where WesCEF and Mitsui are investigating carbon storage in depleted gas fields operated by Mitsui as well as building an ammonia plant together.

Hansen said alternatives to burying the CO2 in old gas fields, such as mineral carbonation, where the pollutant chemically combines with rocks, are under consideration.

“We don’t want to pre-empt technological changes over the next three to five years by committing to just a single course of action,” he said.

Whether customers are willing to pay a premium for lower-emission blue ammonia and products made from it will factor into Wesfarmers’ decision on investing in a second ammonia plant.

The problem of understanding a market that is yet to exist is shared by Andrew Forrest’s Fortescue, which promotes the emissions-free alternative of green ammonia made from water and renewable energy.

“What we are doing is we’re trying to set ourselves up so we have a fundamentally robust project including a pathway to net zero,” Hansen said.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.