The Public-Private Fuel Ammonia Promotion Council, led by the Agency for Natural Resources and Energy (ANRE) under Japan’s Ministry of Economy, Trade and Industry (METI), released an interim report on its work after holding its third meeting on February 8, 2021. From now on, the council will be held about once every six months to review the progress made by the public and private sectors.

In December 2020, METI issued the Green Growth Strategy towards 2050 Carbon Neutrality Action Plan, which describes actions to achieve a carbon neutral society by 2050 and identifies fourteen policy priority areas, one of which is increasing the use of ammonia. Based on the Action Plan and the third meeting, the committee’s interim report highlights challenges and issues in expanding the use of ammonia and the roles of the public and private sectors to be addressed.

The interim report elaborates on the four key priorities to work towards the expansion of ammonia use, as follows:

1) Stabilize the supply of fuel ammonia

2) Reduce costs of ammonia utilization in terms of procurement, production, transportation, and storage

3) Tackle CO2 emissions by adopting an ammonia mixed fuel combustion; and

4) Advance the overseas expansion of the use of ammonia.

The interim report also formulates a roadmap for introducing and expanding the use of ammonia. The report has estimated that Japan will need 3 million tons of ammonia per year in 2030 and 30 million tons per year in 2050. The current price of ammonia in Japan is in the low 20s Japanese yen ($0.21 USD[1]) per Nm3, and the council aims to reduce the price to the high 10s yen ($0.18USD) per Nm3 by 2030.

The report has set 2030 and 2050 goals to meet Japan’s needs for ammonia. By 2030, Japan aims to introduce and deploy 20% ammonia mixed fuel combustion into coal-fired power plants. By 2050, Japan aims to increase the mixed fuel combustion ratio to nearly 50%. In the long term, Japan aims to establish a supply chain that will ensure a stable ammonia supply in Japan and overseas.[2] [3]

[1] ¥ 1 = $ 0.0095 USD. Based on the exchange rate as of February 23, 2021.

[2] https://www.meti.go.jp/shingikai/energy_environment/nenryo_anmonia/20200208_report.html

[3] https://www.meti.go.jp/shingikai/energy_environment/nenryo_anmonia/pdf/20200208_1.pdf