The state-owned organization developing the Alaska LNG export project on the Kenai Peninsula has signed an agreement with Mitsubishi Corp., Toyo Engineering Corp. and Hilcorp Alaska to study creating zero-carbon ammonia and carbon capture and sequestration projects.

Alaska Gasline Development Corp. (AGDC) said the Japanese firms and Houston-based Hilcorp, the largest natural gas producer in Alaska, inked a memorandum of understanding to study the feasibility of using North Slope delivered to the proposed liquefied natural gas terminal for ammonia production.

The study would also further explore whether Alaska’s Cook Inlet basin could be used to sequester the carbon dioxide emitted in the process, creating a zero-carbon fuel that is easier to transport than hydrogen.