Low carbon ammonia project certified in Japan
Japan’s Tosoh Corporation, Mitsui & Co, Hokkaido Electric Power Co and Mitsubishi UBE Cement Co have had their low-carbon ammonia business plan certified by Japan’s Ministry of Economy, Trade and Industry (METI) and Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The certification falls under the Support for the Price Gap system established by the Hydrogen Society Promotion Act.
Support for the Price Gap is being implemented by METI’s Agency for Natural Resources and Energy to accelerate the supply and use of low‑carbon hydrogen and its derivatives.
Over a 15‑year period, this system will provide support focused on the price gap between existing raw materials and fossil fuels and low‑carbon hydrogen and its derivatives. The business plan certified by METI and MLIT sees the four companies cited collaborate to establish a low‑carbon ammonia supply chain for Japan by fiscal year 2030.
Low‑carbon ammonia is produced with significantly fewer CO2 emissions than ammonia produced conventionally. It is thus expected to both decarbonise the value chain for traditional applications of ammonia in fertilisers and chemical products and be a clean fuel that emits no CO2 during combustion.
The Hydrogen Society Promotion Act enacted in Japan considers low‑carbon ammonia a form of low‑carbon hydrogen for use as an energy source and a chemical feedstock.
Under the METI- and MLIT-certified business plan, Mitsui will purchase a portion of the low-carbon ammonia produced at CF Industries’ Blue Point Complex in Louisiana, US, through a joint venture in which Mitsui is an investor and will receive support under Support for the Price Gap.
Mitsui will annually supply 280,000 tonnes of that low‑carbon ammonia to Tosoh, Hokkaido Electric Power, Mitsubishi UBE Cement, and other users. By using this low‑carbon ammonia as either fuel or raw material, each user plans to reduce its environmental impact compared with the use of conventional methods.
This, Japan’s first large‑scale commercial import of low‑carbon ammonia, is an initiative that brings together Mitsui—which has extensive experience in producing, transporting, and importing ammonia and energy products—and user companies from multiple industries, including power generation, ceramics, and chemicals. Working in concert, the project partners aim to achieve rapid market implementation.
