Saudi Arabia Delivers the World's First Low-Carbon Ammonia Cargo To Japan

Japan received its first low-carbon ammonia cargo from Saudi Arabia on Friday, which it intends to use for co-firing with fossil fuels to cut carbon emissions, according to a statement from the four companies involved in the deal.

Energy-poor Climate activists have criticised Japan's plan to add hydrogen and ammonia to its energy mix as being expensive and ineffective. Japan has agreed to study the ammonia and hydrogen supply chains with a number of other nations.

According to a joint statement from the four companies, ammonia shipped to Fuji Oil Company (FOC) on Friday was produced by SABIC Agri-Nutrients using feedstock from Aramco and delivered by Mitsui O.S.K. Lines.

The cargo was transported to FOC's Sodegaura refinery for use in co-fired power generation; however, neither the quantity nor the value of the cargo were disclosed in the statement. Ammonia, which is considered low-carbon because CO2 from the related manufacturing process was captured and used, was said to be considered low-carbon.

By 2030, Japan wants to increase its annual demand for fuel ammonia from almost nothing to 3 million tonnes. Since 2021, the country's largest power producer, JERA, has been co-firing ammonia with coal in a test project at its power plant in central Japan.

The statement did not disclose the amount or value of the cargo but said that ammonia - considered low-carbon as CO2 from the associated manufacturing process was captured and utilized - was transported to FOC's Sodegaura refinery for use in co-fired power generation.

Japan aims to boost its fuel ammonia demand to 3 million tonnes annually by 2030 from nearly zero at present. Its top power generator JERA has been co-firing ammonia with coal in a trial project at its power station in central Japan since 2021.