A consortium consisting of five Japanese cross-industry companies will study the possibility of establishing a supply chain for clean ammonia fuel, with an import terminal in Soma in the country's northeastern Fukushima prefecture.
The consortium includes upstream developer Japex, chemicals producer Mitsubishi Gas Chemical, engineering firm IHI, trading firm Mitsui and shipping firm Mitsui OSK Line (Mol).
The firms will explore the potential creation of a base for importing, storing and supplying clean ammonia, which is not limited to green or blue ammonia, in the Soma region, the companies announced on 30 January. The study will also include a demand survey for hydrogen and ammonia in the surrounding areas, including the decarbonisation of power generation plants through the use of ammonia.
The consortium aims to begin commercial operations in 2030, and are considering leveraging a government subsidy scheme that will narrow the price gap with conventional fuels and feedstocks. Further details such as import scale and import sources will be discussed in the course of the study. The companies are mulling over officially signing an initial agreement in the near future, after starting talks in the April 2022-March 2023 fiscal year.
Japan's demand for ammonia as a fuel is likely to hit 3mn t/yr by 2030 and 30mn t/yr by 2050, according to the country's trade and industry ministry Meti. This will help the country to reduce its greenhouse gas emissions by 46pc by 2030 against 2013 levels, before achieving net zero emissions by 2050.
