Mitsubishi links up with Idemitsu for joint study on low-carbon ammonia

Japanese companies Idemitsu Kosan and Mitsubishi Corporation have entered into an agreement to jointly study the efficient operation of clean ammonia carriers and transshipment terminals as well as the structuring of a low-carbon ammonia supply chain.

In addition to the efficient operation of clean ammonia carriers and transshipment terminals, the joint study will focus on the offtake of ammonia and the companies’ participation in low-carbon hydrogen and ammonia production project under development by U.S. energy major ExxonMobil in Baytown, Texas.

In September this year, Mitsubishi and ExxonMobil signed a project framework agreement to advance discussions regarding Mitsubishi’s offtake of low-carbon ammonia and equity participation in the project.

According to ExxonMobil, the planned project is expected to produce virtually carbon-free hydrogen with approximately 98% of CO2 removed and low-carbon ammonia. The final investment decision is expected in 2025 and is subject to necessary regulatory permits.

This project aims to start production of low-carbon hydrogen (approximately 900,000 tons per year) and low-carbon ammonia (over 1 million tons per year) by 2029 and is expected to be the world’s largest of its kind.

Through the joint study, Idemitsu and Mistubishi also aim to accelerate their study on structuring a supply chain for low-carbon ammonia procured from overseas.

Idemitsu has established an ammonia import and receiving terminal utilizing the existing infrastructure at its Tokuyama Complex in Shunan City, Yamaguchi Prefecture, and in cooperation with neighboring companies in the Shunan Industrial Complex aims to jointly introduce over 1 million tons of ammonia as fuel and raw materials by 2030.

For its part, Mitsubishi is assessing the partial conversion of its LPG terminal, Namikata Terminal, in Imabari City, Ehime Prefecture, into an ammonia terminal and is preparing to build a hub terminal that will supply approximately 1 million tons of ammonia annually to various industrial applications such as electricity, transportation, and chemicals by 2030.

In April 2023, Mitsubishi and potential customers in the Shikoku and Chugoku regions agreed to establish a “Council for utilizing Namikata Terminal as a Hub for introducing Fuel Ammonia,” and have been discussing measures to handle ammonia, operate the terminal efficiently and expand demand.

Idemitsu and Mitsubishi’s latest study follows their collaboration established earlier this year when Idemitsu joined forces with Mitsubishi and Proman on the development of the proposed clean ammonia production project in Lake Charles, Louisiana, U.S.

Ammonia produced at the facility will be primarily exported to Japan as a clean fuel to reduce emissions from coal-fired power plants, in line with Japan’s national strategy to grow domestic ammonia consumption to help achieve its decarbonization goals.