Idemitsu and Mitsubishi develop low-carbon ammonia supply chain
Photo courtesy of Mitsubishi Corporation

Idemitsu and Mitsubishi develop low-carbon ammonia supply chain

Idemitsu Kosan and Mitsubishi Corporation (MC) have joined forces to explore the creation of a large-scale, stable supply chain for low-carbon ammonia, marking a significant step towards achieving decarbonisation in various industries. The two companies are actively collaborating to optimise clean ammonia transport, terminal operations, and to participate in ExxonMobil’s planned low-carbon hydrogen and ammonia project in Baytown, Texas, U.S.A.

The ExxonMobil initiative aims to produce approximately 900,000 tonnes of low-carbon hydrogen and more than 1 million tonnes of low-carbon ammonia per year by 2029, positioning it as the world’s largest low-carbon production facility. With around 98% of carbon emissions captured, the project represents a major advancement in sustainable fuel production. Idemitsu and Mitsubishi Corporation aim to secure ammonia offtake agreements to supply these products to Japan by 2030.

Infrastructure development for ammonia use in Japan

Idemitsu is upgrading its Tokuyama Complex to serve as a receiving terminal, targeting the introduction of more than 1 million tonnes of ammonia for industrial applications. In a first for Japan, it conducted a successful demonstration of ammonia combustion in a naphtha cracking furnace in February 2024, further integrating ammonia into its processes. The Japanese Ministry of Economy, Trade and Industry (METI) has also supported Idemitsu’s initiatives through its Hydrogen Supply Infrastructure Development Project.

Mitsubishi Corporation is preparing to convert part of its Namikata LPG Terminal into an ammonia hub, supplying around 1 million tonnes of ammonia annually for power generation, transportation, and chemical industries. Mitsubishi has also convened a council with customers in the Shikoku and Chugoku regions to expand demand and streamline terminal operations, leveraging the terminal’s 40 years of energy hub experience.

Why low-carbon ammonia matters

Ammonia, when burned, does not emit carbon dioxide and is compatible with existing infrastructure, making it an effective solution for reducing carbon emissions across multiple industries. This collaboration between Idemitsu and Mitsubishi aligns with Japan’s national ambition of achieving carbon neutrality by facilitating the decarbonisation of industrial complexes and supporting the transition to cleaner energy sources.

The two companies plan to integrate government, industry, and academic expertise to further accelerate the adoption of ammonia-based technologies and foster a carbon-neutral society.