Japanese Collaboration for Low-Carbon Ammonia Supply Chain Advancement
Key Ideas
- Idemitsu and Mitsubishi are jointly studying the efficient operation of ammonia carriers, transshipment terminals, and a low-carbon ammonia supply chain.
- The collaboration extends to participation in a low-carbon hydrogen and ammonia production project in Texas with ExxonMobil.
- The project aims to produce virtually carbon-free hydrogen and over 1 million tons of low-carbon ammonia annually by 2029.
- Both companies are working on establishing terminals and infrastructure to introduce over 1 million tons of ammonia as fuel and raw materials by 2030.
Japanese companies Idemitsu Kosan and Mitsubishi Corporation have partnered to conduct a joint study on enhancing the operation of clean ammonia carriers, transshipment terminals, and structuring a low-carbon ammonia supply chain. The focus also includes participating in a low-carbon hydrogen and ammonia production venture in Baytown, Texas, led by ExxonMobil. This initiative, aimed at producing carbon-free hydrogen and over 1 million tons of low-carbon ammonia annually, is set to be the world's largest in its category by 2029. Idemitsu is leveraging its Tokuyama Complex in Shunan City to import and receive ammonia, targeting over 1 million tons usage by 2030. Meanwhile, Mitsubishi is looking to convert its LPG terminal in Imabari City into an ammonia terminal and establish a hub terminal supplying ammonia for various industrial applications by 2030. The companies have been actively engaging in discussions and collaborations to drive the adoption of clean ammonia as a fuel. This effort aligns with Japan's strategy to boost domestic ammonia utilization for emissions reduction, particularly in coal-fired power plants, in support of its decarbonization objectives.