Japanese companies – Mitsui & Co, Mitsui Chemicals, IHI Corp., and Kansai Electric Power Co – inked an MOU to create a hydrogen-ammonia chain.

The partnership involves a comprehensive analysis of the feasibility of creating facilities for receiving, storing, and distributing ammonia in the designated zone. 

The collaborative effort will encompass extensive research to broaden ammonia applications in the Kansai and Setouchi regions.

Notably, active dialogues are underway with Kobe Steel, a potential beneficiary of the ammonia utilization due to its commitment to achieving carbon neutrality within its electric power operations.

With well-established technologies for ammonia production, transportation, and storage for both industrial and fertilization purposes, the versatility of ammonia is projected to span various sectors, encompassing its utilization as a power generation fuel and a heat source in the industrial domain.

This collective initiative amalgamates the expertise and experience of Mitsui, the foremost contributor to ammonia imports in Japan.

Their collective knowledge aims to expedite the transition towards a zero-carbon society, thereby lessening the nation’s heavy reliance on oil, coal, and natural gas.

In a parallel development, Osaka Gas and Eneos, an oil wholesaler, have divulged intentions to construct a sizable methanation plant, wherein carbon dioxide and hydrogen are combined to generate methane.

Japan’s ambitious goal is to import 3 million tonnes of clean ammonia by 2030, with a staggering demand projected to reach 30 million tonnes by 2050. 

To secure these substantial quantities, Japanese corporations actively invest across the entire supply chain spectrum.

Supplementing these efforts, the Japanese Government is poised to infuse ¥15 trillion ($107.67bn) into hydrogen initiatives over the upcoming 15 years as part of an updated version of its Basic Hydrogen Strategy, as reported by local media.

This strategic revision, sanctioned during a ministerial meeting in June, significantly elevates Japan’s aspirations of augmenting hydrogen supply from the existing two million tonnes to a remarkable 12 million tonnes by 2040.

The revised strategy specifically targets nine key sectors, including electrolysis advancements, fuel storage battery technologies, and the development of large-scale hydrogen transportation vessels. 

This concerted endeavor underscores Japan’s commitment to constructing robust hydrogen supply chains, aligning with its goal of achieving Net Zero by 2050.