Idemitsu Kosan Co., Ltd. (Idemitsu) and Mitsubishi Corporation (MC) have announced a collaborative initiative aimed at establishing a robust, large-scale supply chain for low-carbon ammonia from overseas sources. This partnership targets the advancement of clean energy solutions, emphasizing the development of sustainable ammonia logistics, terminal infrastructure, and expanded use across Japan’s industries.
Key Focus Areas of the Joint Study
The collaboration between Idemitsu and MC focuses on the efficient operation of ammonia carriers, the enhancement of transshipment terminals, and participation in a low-carbon hydrogen and ammonia production project led by ExxonMobil in Baytown, Texas. The Baytown project, expected to be the world’s largest facility for low-carbon hydrogen and ammonia, aims to produce approximately 900,000 tons of hydrogen and over 1 million tons of ammonia annually by 2029, achieving a near-complete reduction in carbon emissions through a 98% carbon capture rate. A final investment decision is anticipated in 2025.
Idemitsu’s Advancements in Low-Carbon Infrastructure
Idemitsu has repurposed its Tokuyama Complex in Shunan City, Yamaguchi Prefecture, establishing it as a significant ammonia import and reception facility. In partnership with neighboring companies in the Shunan Industrial Complex, Idemitsu aims to supply over 1 million tons of ammonia annually by 2030, leveraging this infrastructure for use as both fuel and raw materials. The Tokuyama Complex recently achieved a milestone as Japan’s first facility to demonstrate ammonia combustion in a commercial naphtha cracking furnace, a project supported by the Agency for Natural Resources and Energy and Japan’s Ministry of Economy, Trade, and Industry (METI).
In February 2024, Idemitsu’s Tokuyama facility hosted a pioneering demonstration of ammonia combustion in its naphtha cracking furnace. This step forward in Japan’s decarbonization efforts highlights Idemitsu’s commitment to reducing carbon emissions in industrial applications.
Mitsubishi Corporation’s Plans for an Ammonia Hub Terminal
MC is evaluating the partial conversion of its Namikata Terminal, located in Imabari City, Ehime Prefecture, into a dedicated ammonia terminal, which would serve as a regional hub. This hub aims to supply approximately 1 million tons of ammonia annually by 2030, addressing demands in the electricity, transportation, and chemical sectors. The Namikata Terminal, with 40 years of operational history as an energy hub, is well-positioned to meet growing decarbonization needs in the Shikoku and Chugoku regions.
Earlier this year, MC established the “Council for Utilizing Namikata Terminal as a Hub for Introducing Fuel Ammonia,” with support from potential customers and stakeholders. This council is responsible for coordinating ammonia handling, terminal operations, and demand expansion. By repurposing existing infrastructure, MC seeks to deliver clean energy solutions while minimizing the need for significant modifications to storage and transportation facilities.
Commitment to Decarbonization and Future Goals
Ammonia, as a fuel that produces zero CO₂ emissions during combustion, represents a practical and effective tool in global decarbonization efforts. Both Idemitsu and MC are committed to using this resource to contribute to Japan’s and the world’s carbon reduction objectives. By constructing a stable, large-scale supply chain for low-carbon ammonia, they aim to support industries in achieving carbon neutrality and transitioning to cleaner energy.
This collaboration underscores Idemitsu’s and MC’s dedication to establishing a comprehensive low-carbon ammonia supply infrastructure, potentially setting a precedent for future decarbonization initiatives worldwide.
Mitsubishi Corporation
Established in 1954, Mitsubishi Corporation (MC) is a global leader headquartered in Tokyo, operating across a diverse spectrum of industries with a commitment to innovation and sustainable growth. Organized into eight business groups—Environmental Energy, Materials Solution, Mineral Resources, Urban Development & Infrastructure, Mobility, Food Industry, Smart-Life Creation, and Power Solution—MC engages in activities that span energy, materials, infrastructure, and more. Driven by our mission to meet the needs of tomorrow, we focus on creating value across industries and fostering positive global impact.
Idemitsu Kosan Co., Ltd.
Founded in 1940, Idemitsu Kosan is a leading Japanese energy company headquartered in Tokyo. We develop, manufacture, and market a wide range of energy and material solutions in partnership with a network of trusted partners and customers. Our business spans fuel oil, basic chemicals, high-performance materials, electric power, and renewable energy. Through continuous innovation and collaboration, we aim to create sustainable solutions that support industry and society toward a carbon-neutral future.
Source Idemitsu Kosan