Japan and South Korea are set to collaborate on building a global supply chain for hydrogen and ammonia, as reported by Nikkei Asia on November 10. The cooperative program, named the Hydrogen Ammonia Global Value Chain, is expected to be announced by Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk Yeol during their visit to Stanford University in California next week. The initiative will involve joint efforts to improve negotiation capabilities for price discussions and ensure a consistent procurement of hydrogen and ammonia. To support this initiative, government-affiliated financial institutions will provide assistance to Japanese and South Korean companies in raising funds for joint investments in hydrogen and ammonia production projects overseas.
The collaborative program’s ultimate goal is to establish a maritime supply chain for globally transporting clean-burning fuels by 2030. By securing a stable supply of these two clean fuels, the two countries aim to collectively address challenges related to the decarbonization of carbon-intensive sectors, including steel and chemicals. Japan, in particular, has outlined plans to incorporate ammonia into its fuel mix, aiming to extend the lifespan of its coal-fired power plants while advancing the decarbonization of its energy sector. This partnership follows similar collaborations between the private sectors of Japan and South Korea. In July, Lotte Chemical [011170:KS] and Japanese trading house Itochu [8001:JP] announced collaborations in ammonia trading, ammonia infrastructure utilization, and hydrogen-ammonia market development. Additionally, in February, Mitsubishi [8058:JP], Lotte Chemical, and German energy giant RWE [RWE:GR] joined forces to establish a U.S.-based ammonia plant with the capacity to produce 10 million tons of fuel ammonia annually.
Sources:
https://www.kedglobal.com/hydrogen-economy/newsView/ked202207220015
https://www.chemanager-online.com/en/news/lotte-mitsubishi-and-rwe-us-ammonia-project