ITOCHU and Hive South Africa Collaborate on Green Ammonia

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Itochu and south Africa on Green ammonia

ITOCHU Announces Collaboration in the Green Ammonia Project with Hive South Africa with a View Towards Creation of a Decarbonized Society, ITOCHU Corporation announced today that it concluded a Memorandum of Cooperation (MOC) concerning a collaboration in the field of green ammonia with Hive Hydrogen South Africa.

In September 2023, the Ministry of Economy, Trade and Industry held a plenary session at Tokyo GX Week 2023 where an MOC regarding a collaboration in the fields of hydrogen and ammonia was signed by Japan and the Republic of South Africa. This MOC with Hive is aligned with the two countries’ desire to deepen collaboration pertaining to the development of a sustainable and low-cost hydrogen and ammonia supply chain.

ITOCHU and Hive will jointly engage in deliberation regarding the green ammonia production project in Coega, Nelson Mandela Bay, the Eastern Cape province, the Republic of South Africa. The project will utilize the rich sources of renewable energy (wind and solar power) and existing infrastructure such as the ports in the area to produce and market competitive green ammonia.

Ammonia is a hydrogen carrier that can be efficiently transported and stored at relatively low cost. The substance is expected to reduce greenhouse gas emissions when used as a CO2-free fuel for thermal power plants, ships, etc. Unlike conventional production methods for fossil fuels such as gas and coal, green ammonia will be produced from green hydrogen, which in turn is produced from renewable energy via an electrolysis process. Green ammonia draws attention as a future-generation sustainable energy resource for achieving net-zero CO2 emissions.

ITOCHU established its contributions to the SDGs and the strengthening of its SDG initiatives as one of the Basic Policies in its Medium-term Management Plan. Under this policy, it has been strengthening initiatives for the establishment of supply chains with an eye on the stable supply of ammonia and promoting the project to manufacture and sell low-carbon ammonia in Canada, the development of ammonia-fueled ships and establishment of an international value chain for ammonia fuel for ships and the use of low-carbon ammonia for fertilizer-related applications.

With this MOC as a platform, ITOCHU, jointly with Hive, aims to establish supply chains for green ammonia using South Africa’s competitive resources with the goal of realizing a decarbonized society.

About Hive Hydrogen

Hive Hydrogen South Africa is backed by Hive Energy and Built Africa. The team has been operating since September 2019. Hive Hydrogen SA is establishing five large scale Hydrogen and Ammonia plants in South Africa, powered by 15 GW of renewable energy. In 2021 we announced the establishment of a $4.6bn Green Ammonia Plant. The plant will have a dedicated power supply at the Coega Special Economic Zone, alongside the Port of Ngqura.

There is a massive surge in demand for ammonia globally to meet current agricultural, chemical, and mining requirements. Furthermore, Green Ammonia is expected to become the chosen fuel in the maritime industry. Because of the changes in the renewable energy sector, now is the perfect time to invest in this commodity.

Southern Africa is one of a few regions around the world with very favourable conditions for green hydrogen and ammonia production and export. South Africa has world-class renewable resources, good harbours, and a high standard of local skills. Because of these features, it is the ideal location for green hydrogen and green ammonia plants. Based in Nelson Mandela Bay, the plant will produce 900,000 tons of green ammonia a year. Green ammonia produced in SA will be exported to world markets. The export list will include the Far East, Europe, and the USA.

Source ITOCHU Corporation