Mitsubishi Contemplates Establishing an Ammonia Fuel Import Center in Japan

01 Oct, 2023

Mitsubishi Contemplates Establishing an Ammonia Fuel Import Center in Japan

Japanese conglomerate Mitsubishi is exploring the potential transformation of the Namikata terminal near Hiroshima into a pivotal import hub for fuel ammonia. This strategic move aligns with Japan's commitment to utilizing ammonia as a significant component in its transition to achieving net-zero emissions, particularly in conjunction with coal. As part of this initiative, Japan is conducting a test project, with ambitions to scale it nationwide.

Mitsubishi recently formalized a memorandum of understanding with Switzerland-based Proman to evaluate the feasibility of a clean ammonia production project in Lake Charles, United States. If successful, this Lake Charles project could materialize by the late 2020s and potentially serve as a source of ammonia supply for Japan. Japan's aspiration is to boost domestic ammonia consumption to 3 million metric tons annually by 2030.

Mitsubishi is currently assessing the adaptation of the Namikata terminal to receive ammonia from potential production ventures in Lake Charles and Corpus Christi, located along the Gulf of Mexico coast in the United States. Takao Hariya, the head of Mitsubishi's next-generation fuels and petroleum division, envisions the establishment of an ammonia terminal at the forefront of the burgeoning fuel ammonia market. This terminal would function as a cost-effective import hub capable of accommodating large vessels.

The Corpus Christi project, a collaboration that Mitsubishi previously committed to exploring with other partners, aims to commence production by 2030. Once fully operational, it could produce up to 10 million tons of clean ammonia annually. Mitsubishi has disclosed plans to repurpose its existing LPG storage capacity at the Namikata terminal into ammonia tanks, enabling the facility to handle approximately 1 million metric tons of ammonia per year by 2030.