IHI-led seven-company low-carbon ammonia plan certified under Japan's price-gap scheme
- The plan was certified under the “Support focusing on the price gap” scheme by the Minister of Economy, Trade and Industry and the Minister of Land, Infrastructure, Transport and Tourism.
- IHI will offtake low-carbon ammonia produced by a project jointly developed with ACME Group in Odisha, India.
- Seven Japanese companies will use the imported ammonia as fuel for power generation and as feedstock for chemical and other industrial applications.
- The certification supports development of Japan’s ammonia value chain from fiscal 2030 onward and certified suppliers may receive JOGMEC support.
Certification
IHI Corporation, Kobelco Power Kobe (Kobe Steel), Sumitomo Chemical, Nippon Beet Sugar Manufacturing, Hokkaido Electric Power, Mitsubishi Gas Chemical and UBE Corporation had their plan certified under the “Support focusing on the price gap” scheme established by the Hydrogen Society Promotion Act.
Supply chain and roles
IHI will offtake low-carbon ammonia produced by a manufacturing project jointly developed with ACME Group in Odisha, eastern India, and supply it to the six other partner companies in Japan.
End uses and impact
The seven companies plan to use the imported low-carbon ammonia as fuel for power generation and as a feedstock for chemical and other industrial applications to reduce environmental impact.
Scheme details and timeline
The price-gap scheme is designed to support the differential between low-carbon hydrogen/derivatives and conventional fuels and feedstocks; certified project suppliers may receive support from the Japan Organization for Metals and Energy Security (JOGMEC). The certification is described as an important milestone for Japan's ammonia value chain from fiscal 2030 onward.
Source: MGC