Large-Scale Low-Carbon Ammonia Supply Chain Plan Certified under Japan’s “Support focusing on the price gap” Scheme

IHI Corporation
Kobe Steel, Ltd.
Sumitomo Chemical Co., Ltd.
Nippon Beet Sugar Manufacturing Co., Ltd.
Hokkaido Electric Power Co., Inc.
Mitsubishi Gas Chemical Co., Inc.
UBE Corporation

Large-Scale Low-Carbon Ammonia Supply Chain Plan Certified under Japan’s “Support focusing on the price gap” Scheme
– Low-carbon ammonia from India to advance decarbonization in Japan’s power, chemical and industrial sectors – 

 IHI Corporation, together with Kobelco Power Kobe, Inc. (a wholly owned subsidiary of Kobe Steel, Ltd.), Sumitomo Chemical Co., Ltd., Nippon Beet Sugar Manufacturing Co., Ltd., Hokkaido Electric Power Co., Inc., Mitsubishi Gas Chemical Company, Inc., and UBE Corporation (collectively, the “seven companies”), today announced that their plan to utilize low-carbon ammonia produced in India has been certified under the “Support focusing on the price gap” scheme*1, in accordance with the Hydrogen Society Promotion Act, by the Minister of Economy, Trade and Industry and the Minister of Land, Infrastructure, Transport and Tourism.

 In this supply chain development, IHI will offtake the ammonia produced by a low-carbon ammonia manufacturing project being jointly developed with ACME Group*2 in Odisha, located in eastern India, and supply it to the seven companies in Japan. The seven companies will use the ammonia as fuel for power generation and as feedstock for chemical and other industrial applications, thereby contributing to the reduction of environmental impact.

  The certification marks an important milestone in the development of Japan’s ammonia value chain from fiscal 2030 onward. The seven companies will work to steadily advance and expand the utilization of low-carbon ammonia, aiming to contribute to the realization of a carbon-neutral society.

*1 “Support focusing on the price gap” scheme under the Hydrogen Society Promotion Act is designed to promote the establishment of supply chains for low-carbon hydrogen and its derivatives, including low-carbon ammonia, by supporting the price differential between low-carbon hydrogen and related products and conventional fuels and feedstocks. Certified project suppliers may receive support from the Japan Organization for Metals and Energy Security (JOGMEC) .

*2 The ACME Group is one of India’s leading renewable energy companies and is engaged in the production of low-carbon ammonia and green hydrogen using renewable energy (Website: https://www.acme.in ).

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