The Marubeni Corporation and the Pembina Pipeline Corporation announced May 30 that they had signed a Memorandum of Agreement (MOA) to jointly develop a low-carbon ammonia supply chain that runs from Western Canada to Asia. The project includes the development of a low-carbon hydrogen and ammonia production facility located on Pembina-owned lands adjacent to the company's Redwater Fractionation Complex near Fort Saskatchewan, Canada.

In a statement, the two sides said that Pembina and Marubeni will become the first movers to establish a large-scale low-carbon ammonia supply chain in Canada with access to Japanese and Canadian government support.

Marubeni said that it has already completed initial feasibility studies for the project. he facility will reportedly have a production capacity of 1 million tons of low-carbon ammonia per year.

Once production of the ammonia is completed at the facility, the chemicals will be transported to the West Coast of Canada by rail and then later shipped to Japan as well as other Asian markets.