On April 25, Hokkaido Electric Power Co., Ltd., Hokkaido Mitsui Chemicals, Inc., IHI Corporation, Marubeni Corporation, Mitsui & Co., Ltd., and Tomakomai Futo Co., Ltd., (hereinafter and collectively, the “six companies”), have started a joint study (hereinafter, “study”) for the establishment of an ammonia supply chain based in the Tomakomai area of Hokkaido, Japan. The six companies will work on studies related to the establishment of facilities for receiving, storing, and supplying ammonia from overseas in the Tomakomai area, as well as surveys aimed at expanding the use of ammonia throughout Northern Japan.

Ammonia is expected to contribute to decarbonization in a wide range of fields, including its use as fuel in the power generation sector and as fuel/feedstock in the industrial sector. Moreover, ammonia is promising for its characteristics as a hydrogen carrier. Indeed, since technologies for the production, transportation, and storage of ammonia have already been established for fertilizer and industrial applications, the use of ammonia can contribute to the realization of a hydrogen society as the same technologies can be used to transport and store hydrogen, which is difficult to transport and store on its own in large quantities over long distances, by handling it in the form of ammonia.

The Tomakomai area, where the six companies aim to develop a base, has vast land available for the installation of facilities required for the establishment of an ammonia supply chain, such as the possibility of adding storage tanks to meet future demand increases. Additionally, as the largest marine transportation hub in Northern Japan, the area has shipping routes accessible to both the Sea of Japan and the Pacific Ocean, enabling the supply of ammonia not only to demand sites close to the Tomakomai area but also to hydrogen demand sites throughout Northern Japan by utilizing domestic vessels and other means.

In the same area, efforts to achieve decarbonization, including surveys related to Carbon Capture dioxide and Storage (CCS)* projects and the establishment of hydrogen supply chain, are advancing towards the realization of a zero-carbon city.

In parallel with this joint study, the six companies are discussing the establishment of an ammonia supply chain with Kushiro Power Station Co., Ltd., Nippon Beet Sugar Manufacturing Co., Ltd., and Oenon Holdings, Inc., which are potential customers for ammonia utilization.

The six companies will utilize their respective technologies and expertise to establish an ammonia supply chain in the broader Northern Japan region, starting from the Tomakomai area, aiming to expand the use of ammonia and contribute to the realization of a decarbonized society. To reach this goal, the six companies will continue to work towards the realization of projects that can contribute to the decarbonization of the area and economic development, with the cooperation of Hokkaido and Tomakomai City, combination of both public and private sectors.

CCS = Carbon dioxide Capture and Storage

Scope of study for the establishment of an ammonia supply chain in the Tomakomai area

The location of the ammonia supply facilities in the Tomakomai area