Japan targets 3mn t/yr of ammonia fuel use by 2030

Japan is targeting to expand ammonia fuel use to 3mn t/yr by 2030 through establishing co-firing technology at coal-fired power plants and developing a market and supply chain for the alternative fuel, as part of efforts to achieve the country's 2050 decarbonisation goal.

The trade and industry ministry (Meti) today drafted a roadmap to 2030 and 2050 to boost ammonia use as a fuel for power generation and for ships at a committee set up with related private-sector representatives. The discussion, which was based on Tokyo's 2050 decarbonisation target , called for hydrogen, including ammonia — for which technology is long established for production, storage and transport — to make up 10pc of the country's power portfolio.

Under the roadmap, Meti is aiming to achieve a 20pc ammonia co-firing rate at the country's coal-fired power plants by 2030. Tokyo is targeting to expand the rate to 50pc and above afterwards, before establishing ammonia-fired power generation technology in the run up to 2050. Ammonia fuel demand may reach 30mn t/yr by 2050, equivalent to 5mn t/yr of liquefied hydrogen.

Fuel ammonia supply is targeted below ¥20 (20¢)/Nm³ for 2030, compared with the current level of ¥20-25/Nm³.

Japan's domestic demand for ammonia is currently hovering at around 1mn t/yr for nitrogen feedstock and industrial use. Domestic supply covers 80pc of total demand. Ammonia imports dropped by 9pc on the year to around 213,000t in 2020, with 60pc coming from Indonesia, according to customs data.

The roadmap called for the development of logistics and infrastructure that can ensure stable overseas ammonia production and imports. Meti is urging Japanese companies to gain medium- to long-term access to fuel ammonia through investing in overseas upstream natural gas assets and renewable power sources.

Japan has been co-operating with Saudi Arabia and the UAE , the country's top two oil supplier countries, as well as Russia on ammonia efforts. Australia has also attracted interest from a number of Japanese firms in green ammonia and hydrogen projects.

Japanese shippers and shipbuilders are also striving to develop ammonia-fuelled ships as part of decarbonisation efforts in the global shipping industry. They are also co-operating with Japanese traders to develop an ammonia fuel business, eying growth in demand for ammonia as a marine fuel from ocean-going vessels.

Meti launched the committee discussion on ammonia fuel last October. Tokyo is working on the country's energy policies to bring them in line with the 2050 decarbonisation target and address changes in the market environment brought about by the Covid-19 pandemic. Japan's official energy policy is due for a revision later this year.

By Rieko Suda

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