JULYASIA BUSINESS OUTLOOK8NEWSROOMMITSUI & CO.'S GREEN AMMONIA PLANT IN UAE TARGETS LOWER EMISSIONS BY 2030Following reports that OpenAI plans to restrict access to its API in China and other countries, Chinese AI companies are swiftly moving to attract users who rely on OpenAI's technology for building AI products. OpenAI, known for creating ChatGPT among other AI technologies, has notified users in China that it will block API access starting July 9 for regions it does not support, including China. This move has prompted Chinese AI developers to seek alternatives and reassure existing users.Baidu, a leading AI developer in China, announced an "inclusive Program" aimed at supporting OpenAI users affected by the restrictions. Baidu's cloud unit will offer new users free migration to its Ernie platform and provide additional tokens for its Ernie 3.5 flagship model, matching the scale of usage seen with OpenAI.Alibaba Cloud also joined in by offering free tokens and migration services for OpenAI API users through its AI platform. The company highlighted the competitive pricing of its Qwen-plus model compared to GPT-4, positioning it as a viable alternative.Zhipu AI, another significant player in China's AI sector, introduced a "Special Migration Program" emphasizing its GLM model, which competes directly with OpenAI's ecosystem. Zhipu AI promotes its entirely self-developed technology, emphasizing security and control as key advantages. Mitsui & Co, in collaboration with partners including ADNOC's TA'ZIZ, Fertiglobe, and South Korea's GS Energy, has commenced the construction of an ammonia plant in Al Ruwais, UAE. This initiative is part of Mitsui's strategy to bolster global supply chains for cleaner fuels like hydrogen and ammonia, contributing to efforts aimed at mitigating climate change.The plant, scheduled to begin operations in 2027, aims to produce 1 million metric tons of ammonia annually. Mitsui highlighted that the ammonia produced will feature lower carbon dioxide (CO2) emissions compared to conventional methods, although specific details were not provided in their statement.Key to the project's environmental strategy is the installation of facilities to capture and store CO2 emitted during the manufacturing process. Mitsui plans to transition to producing clean ammonia by 2030, underscoring its commitment to sustainability in the production of this essential chemical.The project's financing includes support from the Japan Bank for International Cooperation (JBIC), which has signed a loan agreement with Mitsui. The loan, co-financed with Sumitomo Mitsui Banking Corp, amounts to $27 million. This financial backing underscores the international cooperation involved in advancing sustainable energy projects.Mitsui intends to utilize a portion of the clean ammonia produced at the UAE plant to supply markets in Japan and other Asian countries. The ammonia will serve various purposes, including as a fuel, chemical feedstock, and fertilizer component, further enhancing its role in green energy initiatives and industrial applications. CHINESE AI FIRMS PIVOT AMID OPENAI ACCESS RESTRICTIONSJULYASIA BUSINESS OUTLOOK8
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