Japan's Mitsui, Others to Jointly Study Hydrogen, Ammonia Supply Chain in Osaka

(Reuters) — Japan's Mitsui & Co., Mitsui Chemicals, IHI Corp. and Kansai Electric Power Co. will conduct a joint study for establishing a hydrogen and ammonia supply chain in the Osaka coastal industrial zone, the companies said.

The announcement on Wednesday comes a day after Eneos and Osaka Gas said they would study the construction of a large e-methane facility — based on green hydrogen — which will be located in the Osaka Bay area.

The four companies would study options for receiving, storing and supplying ammonia - which can be used in power generation among other fields - in the Osaka area to potentially expand its usage in the Kansai and nearby Setouchi regions.

Hydrogen and ammonia, which do not emit CO2 when burning, are an important part of Japan's energy security strategy to reduce the usage of traditional fossil fuels. Mitsui is Japan's biggest ammonia importer.

Separately, Tokyo Gas Co., Osaka Gas Co., Toho Gas Co., Mitsubishi Corp. and Sempra Infrastructure Partners LP would study e-methane exports to Japan from the United States, they said on Wednesday.

The project would comprise a facility that would produce 130,000 metric tons of e-methane per year in Texas or Louisiana in the U.S. to be liquefied at the nearby Cameron LNG terminal and exported to Japan from 2030.

The capacity of the proposed facility is equivalent to 1% of the annual gas demand of Tokyo Gas, Osaka Gas and Toho Gas, five companies said in the joint statement, without providing an investment figure.

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