Japanese oil refiner Idemitsu Kosan [5019:JP] and trading house Mitsubishi Corp [8058:JP] have entered into a partnership with Proman, a Swiss methanol and ammonia producer, to study a fuel ammonia manufacturing project in the US, as reported by Reuters on February 27. Located in Lake Charles, Louisiana, the project is under the front-end engineering design (FEED) stage. It aims to leverage Mitsubishi’s technologies to construct a factory capable of producing around 1.2 million tons of low-carbon ammonia annually by the fiscal year ending in March 2031. Additionally, Idemitsu plans to build an ammonia import terminal using the existing infrastructure at the Tokuyama plant in western Japan. With the terminal, the Japanese companies aim to supply more than 1 million tons of low-carbon ammonia by 2030 to various industrial firms in Japan.

Green ammonia can be produced using hydrogen from water electrolysis and nitrogen separated from the air, featuring a carbon-free manufacturing process that can be powered by 100% renewable energy. Moreover, the existing global infrastructure for ammonia makes it easier to transport than hydrogen, which requires additional processing for transportation. Japan, largely dependent on fossil fuels, positions green ammonia as a crucial part of its energy transition roadmap. The government has set a target to import 3 million tons of ammonia for fuel annually by 2030, with demand anticipated to increase to 30 million tons by 2050. Furthermore, Japan’s largest power generator JERA also plans to use a 20% ammonia fuel mix at all its coal-fired power plants by 2035.

Sources:

https://www.reuters.com/business/energy/japans-idemitsu-joins-study-us-ammonia-project-2024-02-27/

https://bnnbreaking.com/world/pioneering-the-future-japans-bold-leap-into-us-based-clean-ammonia-production

https://m.economictimes.com/industry/renewables/sembcorp-ties-up-with-japanese-firms-for-green-ammonia-project-in-india/articleshow/106102772.cms#:~:text=Japan%20aims%20to%20import%203,towards%20a%20low%2Dcarbon%20future.

https://www.reuters.com/article/idUSL4N2KE2HE/