Calgary-based Pembina Pipeline Corp. and Japanese power and trading conglomerate Marubeni Corp. are partnering to advance a project that would convert Alberta natural gas into hydrogen and ammonia for exports to Asia.

In announcing the partnership, the companies set a target of late 2025 to decide whether to build a conversion plant in the Alberta Industrial Heartland District on the eastern side of the provincial capital in Edmonton. Operations could begin in 2028 under the plan.

“This project represents a transformative opportunity,” said Pembina Vice President Stu Taylor. The proposed hydrogen and ammonia complex is “an example of Pembina’s ability to leverage its existing asset base and core competencies to develop new integrated value chains, including carbon...