TOKYO, Sept 28 (Reuters) - Japanese trading company
Mitsubishi Corp said on Wednesday it had signed a
memorandum of understanding (MoU) with the Port of Corpus
Christi Authority of the United States to collaborate on
large-scale production facility of fuel ammonia in Texas.
The move comes as part of Mitsubishi's efforts to create
global supply chains of the clean fuel to help Japan's and other
Asian countries' attempts to combat climate change, the
company's senior vice president, Hiroki Haba, told the
International Conference on Fuel Ammonia.
Ammonia is used for fertiliser and industrial materials, but
is also seen as a future energy source, along with hydrogen. It
does not emit carbon dioxide when burned, although it creates
emissions if it is made with fossil fuel.
Other details of the MoU were not disclosed, but the two
parties will look into building the production facility, with
the aim for it to start operation in early 2030s and boost
annual output capacity to 10 million tonnes by mid-2030s, a
source at Mitsubishi, who declined to be named, said.
They would look into the possibility of making low-emission
ammonia, produced from natural gas but eliminating emissions by
capturing and storing the emitted carbon nearby, the source
Not far from the area, some companies pump carbon into oil
reservoirs to boost pressure and increase production, a practice
known as enhanced oil recovery, the source said.
Japan is aiming to expand its fuel ammonia demand to 3
million tonnes a year by 2030 and 30 million tonnes by 2050 from
zero now, and create global supply chains of the fuel in a bid
to slash carbon dioxide emissions and tackle climate change.
(Reporting by Yuka Obayashi. Editing by Jane Merriman)