JAPEX and its Partners Seek Subsidy to Establish Ammonia Supply Hub in Soma region

Japan Petroleum Exploration Co. Ltd. (Tokyo, President: Michiro Yamashita), Mitsubishi Gas Chemical Co., Inc. (Tokyo, President: Masashi Fujii), IHI Corporation (Tokyo, CEO: Hiroshi Ide), Mitsui & Co., Ltd. (Tokyo, President and CEO: Kenichi Hori), and Mitsui O.S.K. Lines, Ltd. (Tokyo, President and CEO: Takeshi Hashimoto) (collectively referred to as the “Five Companies”) have applied for the FY2024 “Subsidy for Measures to Promote Introduction of Non-Fossil Energy (Hydrogen Supply Infrastructure Improvement Project)” from the Consortium for Resilient Omni-energy Supply System (CROS) for conducting a survey to establish an ammonia supply base in the Soma area, Fukushima Prefecture. The survey proposal was approved on May 30, 2024.

Ammonia serves as a crucial raw fuel anticipated for diverse applications in achieving a carbon-neutral society by 2050. It holds promise as a hydrogen carrier, facilitating the conversion of hydrogen into other forms or materials for efficient storage and transportation. Ammonia is expected to play a pivotal role in advancing the hydrogen economy, where hydrogen serves as a primary energy source. The Japanese government collaborates closely with both public and private sectors to develop international standards that leverage the strengths of ammonia-related technologies and drive market leadership. Furthermore, the Japanese government has introduced the Hydrogen Society Promotion Bill to the Diet, which has been enacted to promote the supply and utilization of low-carbon hydrogen and its derivatives, facilitating a smooth transition to a decarbonized, growth-oriented economic structure.

The Public Solicitation aims to secure partial subsidies from CROS to fund feasibility studies for building infrastructure for hydrogen and other resources, along with supporting these studies. Its goal is to stimulate significant demand for hydrogen usage and establish a supply chain that allows for cost-effective, efficient, and independent development.

In January 2024, the Five Companies initiated a collaborative study aimed at establishing an ammonia reception, storage, and supply facility in the Soma area of Fukushima Prefecture. The objective is to develop a business capable of supplying ammonia to a wider region encompassing northern Kanto, particularly Soma and its surrounding areas, as well as the Tohoku and Hokkaido regions. As part of this initiative, the Five Companies applied for the Public Solicitation survey, which has been approved following the screening process. Moving forward, the consortium will conduct surveys to define the specifications for the ammonia facility, assess vessel requirements, and study potential business models.

The Five Companies will leverage their collective expertise to extend the reach of decarbonization across the broader northern Kanto, Tohoku, and Hokkaido regions by establishing an ammonia supply base in the Soma area. This initiative aims to foster economic development in the region. Through collaboration with Fukushima Prefecture, Soma City, and Shinchi Town in the Survey, the consortium of public and private sectors will collaborate to advance this project. Their goal is to achieve regional decarbonization and stimulate economic growth.