Bord Gáis Energy (BGE), along with partners, is planning to build a new ammonia fired electricity generation facility in Cork.
The power station will be the first of its kind in Europe.
BGE's parent Centrica, along with Mitsubishi Power Europe, have signed a memo of understanding to explore the development, construction and operation of the facility.
If it goes ahead, it will be based at BGE’s existing Whitegate Combined Cycle Gas Turbine power station in Cork.
Ammonia is considered a low carbon and cleaner alternative fuel source.
"Low carbon ammonia has a higher volumetric density than hydrogen, enabling the utilisation of low carbon hydrogen in a form which is easy to transport and store, resulting in a fuel that can be combusted with no carbon emissions at point of use," BGE said in a statement.
"Its use as a fuel is a promising long-term energy solution for the transition to a low-carbon energy value chain."
A feasibility assessment is now to take place and if successful that will lead to engagement with local stakeholders.
"We believe that the strategic combination of Centrica’s vision, investment and global trading capability, along with Mitsubishi Power Europe’s innovation and technology, complemented by Bord Gáis Energy’s existing assets will effectively drive the success of this transformative project," said Dave Kirwan, managing director of BGE.
Centrica said this is one of many projects it is working on to demonstrate how the hydrogen economy could work in practice.
"In this instance, we hope to be able to show how hydrogen could be stored and transported as low carbon ammonia, delivering cleaner energy for customers at the point of use," said Chris O’Shea, Group Chief Executive, Centrica.
"Centrica Energy continues to be a pioneer in supporting the development of these new international value chains and we’re delighted to have the expertise of our partners in Mitsubishi in delivering the project."
