Accelerating Low-Carbon Ammonia Supply Chain Study for a Greener Future
Key Ideas
- Idemitsu and Mitsubishi Corporation are jointly studying the efficient operation of clean ammonia carriers and transshipment terminals as part of a low-carbon ammonia supply chain project.
- The project in Baytown, Texas aims to produce virtually carbon-free hydrogen and low-carbon ammonia, with a projected annual capacity to be the world's largest by 2029.
- Both companies plan to utilize existing infrastructure in Japan to introduce over 1 million tons of low-carbon ammonia by 2030, supporting the region's carbon neutrality goals.
- Ammonia, being carbon-free when burned, is expected to aid in decarbonization across industries, with Idemitsu and MC aiming to supply Japan with low-carbon ammonia from the project.
Idemitsu Kosan and Mitsubishi Corporation have embarked on a joint study to enhance the efficiency of clean ammonia carriers and terminals, forming the basis for a large-scale and stable supply chain of low-carbon ammonia sourced internationally. The collaboration involves participation in ExxonMobil’s upcoming low-carbon hydrogen and ammonia production project in Baytown, Texas, USA. This venture, set to make a final investment decision in 2025, aims to begin production of low-carbon hydrogen and ammonia by 2029, aspiring to become the world's leading producer in this sector.
Idemitsu has already established an ammonia import terminal at its Tokuyama Complex in Japan, with plans to introduce significant quantities of ammonia for various applications by 2030 in collaboration with neighboring companies. The company has also demonstrated the use of ammonia in industrial processes and secured government support for hydrogen supply infrastructure development projects. Likewise, Mitsubishi Corporation is considering converting its LPG terminal in Imabari City, Japan, into an ammonia terminal to cater to diverse industrial demands by 2030. Jointly with local partners, MC is exploring the potential of Namikata Terminal to serve as a hub for fuel ammonia distribution.
The significance of ammonia lies in its carbon-neutral combustion and compatibility with existing transport and storage systems, presenting a sustainable solution for decarbonization efforts. As part of their commitment to a greener future, both companies are dedicated to structuring a low-carbon ammonia supply chain that aligns with the goal of achieving a carbon-neutral society. By leveraging their expertise and infrastructure, Idemitsu and Mitsubishi Corporation aim to lead the way in promoting sustainable practices and contributing to the global transition towards cleaner energy sources.
Topics
Projects
Sustainable Energy
Corporate Collaboration
Infrastructure Development
Energy Industry
Carbon Neutral
Supply Chain
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