Mitsui & Co., Ltd. (“Mitsui”; Head office: Tokyo; President and CEO: Kenichi Hori) together with Hokkaido Electric Power Co., Inc., Mitsubishi UBE Cement Co., Ltd., and Tosoh Corporation, today announced the receipt of approval from the Minister of Economy, Trade and Industry (METI) and the Minister of Land, Infrastructure, Transport and Tourism (MLIT) for certification under a support system focusing on the price gap (“Support for the Price Gap”) within the Hydrogen Society Promotion Act.
Support for the Price Gap*, implemented by METI’s Agency for Natural Resources and Energy, aims to accelerate the supply and utilization of low-carbon hydrogen and derivatives. Over a 15-year period, the system provides support focusing on the price gap between existing raw materials and fossil fuels, and low-carbon hydrogen and derivatives. Based on the business plans certified by METI and MLIT, Mitsui & Co. and the three other companies aim to establish a low-carbon ammonia supply chain for Japan by fiscal year 2030.
Low-carbon ammonia is ammonia produced with significantly reduced CO2 emissions compared to conventional manufacturing processes. It is expected not only to decarbonize the value chain for its traditional uses in fertilizers and chemical products but also to serve as a clean fuel that emits no CO2 during combustion. In Japan, which has enacted a Hydrogen Society Promotion Act, low-carbon ammonia is being explored as one form of low-carbon hydrogen for utilization as a fuel and as a chemical feedstock.
Under its plan, Mitsui will purchase a portion of the production from Blue Point, a low-carbon ammonia manufacturing project in Louisiana, USA, for which Mitsui is participating as an investor, and receive support for the price gap. Mitsui will supply a total of 280,000 tons of this low-carbon ammonia annually to Hokkaido Electric Power Co., Inc., Mitsubishi UBE Cement Co., Ltd., Tosoh Corporation, and other customers. Each customer will utilize it as fuel or raw material, thereby reducing environmental impact compared to conventional methods.
As Japan’s first large-scale commercial import project for low-carbon ammonia, Mitsui, with its extensive experience in manufacturing, transporting, and importing ammonia and energy products, will through this project collaborate with multiple end-users across industries including power generation, ceramics, and chemicals to achieve early societal implementation, expand the use of low-carbon ammonia, and establish a stable value chain.
*Support system focusing on the price gap
Japanese
https://www.enecho.meti.go.jp/category/saving_and_new/advanced_systems/hydrogen_society/carbon_neutral/index.html
English
Hydrogen Society Promotion Act Enacted. Toward a Forthcoming Hydrogen-based Society. Part 2: Utilization of Clean Hydrogen
