IHI and Taiwan Fertilizer Sign Clean Ammonia Value Chain Agreement
IHI Corporation and Taiwan Fertilizer, Co., Ltd. today signed a memorandum of understanding to explore jointly establishing a clean ammonia value chain in Japan and other countries. Taiwan Fertilizer is a leading chemical fertilizer producer in its home market, where it is also the largest manufacturer, seller, and transporter of ammonia.
Under this accord, IHI will build its value chain by supplying clean ammonia to East Asia including Japan and Taiwan, from clean ammonia production projects that it is considering worldwide. The two companies will initially look into optimizing logistics by harnessing Taiwan Fertilizer’s ammonia receiving terminal. They will additionally discuss ways to generate demand for clean ammonia in Taiwan’s industrial sector, including by encouraging green feedstock uptakes.
As well as serving as a fertilizer feedstock, ammonia can deliver decarbonization solutions as an advanced clean energy source because it is free of carbon dioxide emissions when burned. Applications include using ammonia to fuel power plants and as a raw material in chemical products. IHI and Taiwan Fertilizer are focusing on clean ammonia*.
IHI will endeavor to create demand with its unique fuel ammonia utilization technology and lead the world in building a clean ammonia value chain to help realize a carbon-neutral economy.
* Clean ammonia emits minimal carbon dioxide during its manufacture. There are two types. The first is green ammonia, which producers create using renewable energy. The second is blue ammonia, which they make with fossil fuels. Manufacturers capture emissions from blue ammonia production and store them underground to minimize them.