New partnership looking into ammonia value chain development in Taiwan

Japan’s Mitsubishi Heavy Industries (MHI) has entered into a memorandum of understanding (MoU) with Taiwan Fertilizer (TFC) to conduct a joint pre-feasibility study that will explore the establishment of an ammonia value chain in Taiwan.

Under the 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.

In March 2022, the Taiwanese government announced its climate target to achieve carbon neutrality by 2050, with a focus on reducing carbon emissions and promoting the adoption of less carbon-intensive fuels.

To achieve this, TFC is promoting the use of blue and green ammonia as a fuel in Taiwan. In 2023, the company received the first commercial shipment of low-carbon ammonia, and in January 2024, it established an Ammonia Energy Division.

As for MHI, the group is pursuing a growth strategy in the area of energy transition, aiming for decarbonization on the energy supply side to support the goal of achieving carbon neutrality by 2040.

Through the collaboration with TFC, MHI Group said it will support the establishment of the fuel ammonia value chain in Taiwan to meet the decarbonization needs of various industries, including the power generation sector, and as a way of contributing to the realization of a sustainable, carbon neutral world.