Mitsubishi Heavy Industries, Taiwan Fertilizer Collaborate on Ammonia Value Chain for Net-Zero Emissions Goal

Mitsubishi Heavy Industries, Taiwan Fertilizer Collaborate on Ammonia Value Chain for Net-Zero Emissions Goal

Mitsubishi Heavy Industries, Ltd. (MHI), a Tokyo-headquartered industrial group spanning energy, logistics & infrastructure, industrial machinery, aerospace, and defense, has entered into a Memorandum of Understanding (MoU) with Taiwan Fertilizer Co., Ltd. (TFC), headquartered in Nangang District. The MoU aims to conduct a joint pre-feasibility study exploring the establishment of an ammonia value chain in Taiwan to support Taiwan’s “2050 Net-Zero Emissions” goal.

Under this MoU, MHI and TFC will assess the facilities and economic feasibility of the fuel ammonia value chain, including ammonia receiving, storage, handling, and delivery to power plants, as well as using ammonia as a fuel for power generation. Through this study, both companies aim to lay a strong foundation for a robust ammonia value chain in Taiwan.

Ammonia, a compound comprised of hydrogen and nitrogen, serves as an efficient carrier for transporting hydrogen and can also be directly combusted as a fuel without producing CO2. As ammonia emerges as a clean fuel of the future, establishing a comprehensive value chain from production to utilisation will significantly contribute to achieving a carbon-neutral society.

Related: Clariant Catalysts and KBR expand collaboration to boost low-carbon ammonia (https://www.eog-asia.com/clariant-catalysts-and-kbr-expand-collaboration-to-boost-low-carbon-ammonia/)

In March 2022, the Taiwanese government announced its climate target to achieve carbon neutrality by 2050, focusing on reducing carbon emissions and promoting the adoption of less carbon-intensive fuels. To support this goal, TFC has committed to promote the use of blue ammonia, produced using hydrogen derived from fossil fuels with CO2 capture, and green ammonia, produced using renewable energy, water, and air, without emitting CO2. This commitment is demonstrated by TFC’s importation of Taiwan’s first low-carbon ammonia in June 2023 and the establishment of an Ammonia Energy Division in January 2024. Low-carbon ammonia has reduced CO2 emissions throughout the supply chain, achieved through processes such as CO2 separation and capture during production.

Related: Tecnimont/Nextchem undertake engineering design study for green ammonia plant in India

Through this collaboration with TFC, MHI Group, which aims for decarbonisation on the energy supply side to support the company’s goal of achieving carbon neutrality by 2040, is expected to support the establishment of the fuel ammonia value chain in Taiwan to meet the decarbonisation needs of various industries, including the power generation sector.