Japan's Idemitsu Kosan said June 25 it has agreed with IHI to jointly consider developing ammonia supply chain using existing facilities at the former's Tokuyama complex, securing fuel ammonia and running a co-burning test at a naphtha cracker furnace in fiscal year 2022-23 (April-March).
Idemitsu's move came after it said May 11 it will pursue 2050 carbon neutrality, with action plans that include considering developing both blue and green ammonia supply chains in the Middle East, Australia and North America with an eye to using ammonia as a fuel for power generation.Under the latest agreement, Idemitsu said it will consider utilizing its storage and petrochemical units at the Tokuyama complex and turn it to function as an ammonia import terminal, with an eye to import blue and green ammonia and supply ammonia to businesses surrounding the complex.
Idemitsu plans to co-burn ammonia with gas produced from an ethylene plant at the naphtha cracker furnace for its planned test at the Tokuyama complex in fiscal 2022-23, a company spokeswoman said.
Ammonia, a compound consisting of three parts hydrogen and one part nitrogen, is seen as a prospective zero emissions fuel because it releases zero CO2 emissions when combusted.
2030 targetIdemitsu also said May 11 it intends to establish a new business model by fiscal 2030-31 to turn its refinery complex into the Carbon Neutral Transportation Center, including the introduction of hydrogen and ammonia as well as renewable energy.
Idemitsu aims to cut 4 million mt of its Scope 1 and 2 greenhouse gas emissions by fiscal 2030-31 from the fiscal 2017-18 level, double the 2 million mt reduction target announced in November 2019.
In fiscal 2019-20, Idemitsu said it emitted 12.9 million mt of Scope 1 and 2 CO2 emissions, with its customers emitting 117.7 million mt of Scope 3 CO2 emissions.
Idemitsu is the second-largest Japanese refiner, with a combined 1.09 million b/d capacity over seven group refineries in Japan. It produces 24,000 b/d of equity crude oil and 11 million mt/year of coal.
It also has 1.4 GW of power generation capacity, of which 0.5 GW of electricity is generated from renewable energy, and has a 1 GW/year production capacity of solar power panels.
