Mitsui & Co, Mitsui Chemicals, IHI Corporation and The Kansai Electric Power Co have signed a Memorandum of Understanding (MOU) to study establishing a hydrogen and ammonia supply chain in the Osaka coastal industrial zone. Based on the MOU, the four companies will study the development of bases for receiving, storing, and supplying ammonia in the zone, and conduct surveys to expand the use of ammonia in the Kansai and Setouchi regions. Discussions have already begun with Kobe Steel, which is a potential candidate that could benefit from the use of ammonia as it has announced a commitment to achieving carbon neutrality in the electric power business. Given that the technologies for production, transportation, and storage of ammonia for fertiliser and industrial applications have already been established, ammonia is expected to be utilised across a wide range of fields, including as a fuel for power generation, and for heat generation in the industrial sector. Through this initiative, Mitsui, which holds the top share of ammonia imports to Japan, Mitsui Chemicals, which owns chemical plants in the Sakai-Senboku Coastal Industrial Zone of Osaka, IHI, which is building a value chain with its extensive ammonia-related technologies, and Kansai, which operates energy businesses in the Kansai region, will combine their experience and knowledge to contribute to a zero carbon society; currently Japan relies heavily on oil, coal and natural gas. Osaka Gas and oil wholesaler Eneos recently announced plans to develop a large-scale methanation plant, combining carbon dioxide with hydrogen to produce methane. By 2030, Japan aims to import 3 million tonnes of clean ammonia, with demand rising to 30 million tonnes by 2050. To secure these volumes, Japanese companies are now making investments up and down the supply chain. The Japanese Government plans to invest ¥15 trillion ($107.67bn) in hydrogen over the next 15 years under a revision of its Basic Hydrogen Strategy, according to Japanese media. Approved at a ministerial meeting in June, the revision increases the country’s ambitions to boost hydrogen supply from the current level of two million tonnes to 12 million tonnes by 2040. Under the revised plan, nine strategic areas including electrolysis development, fuel storage batteries and large-scale tankers for the transportation of hydrogen, will come under focus as Japan aims to build up its hydrogen supply chains in a bid to meet its Net Zero by 2050 goals.

Source:H2 VIEW