Contribution of Clean Fuel Ammonia for Carbon Neutrality “Sustainable Hydrogen Value Chains” Norwegian Hydrogen Association, Innovation Norway, Embassy of Norway April 21, 2021 Shigeru MURAKI Representative Director Clean Fuel Ammonia Association 1 Roadmap of Fuel Ammonia Value Chain Renewable energy Green Ammonia FS of Green and Blue Ammonia production from Renewable energy Ammonia Supply Chains Fossil fuel Blue Ammonia Estimated Price from US to Japan US$340/ton (US$2/kg-H2) CCS EOR 2021 2025 2030 ～2050 Utilization 0.5-1.0 MMtons 3 MMtons 30 MMtons Coal Power Plants Large-scale Demo Preparation Implementation (~1,000MW) & Facility Design Small GTs Medium Imp lmplementation Development & Commercialization ACCGT Industrial Furnaces Development & Commercialization Implementation Marine Engines Development & Commercialization, Standardization, etc. Implementation 2 Key Technologies of Ammonia Utilization in the Energy Market Mix combustion in coal fired boilers Gas turbines ・20%-60%NH3 in Coal ・Large Scale Demonstration from 2021-23 【50 kW, 300 KW】 (20%NH in 1GW Coal Power of JERA) 3 NH3 Single Fuel 【2MW】 Toyota Energy Solutions 20%-50%NH3 in Natural Gas Development of NH3 Single Fuel System by 2025 20% NH3 / CH4 flame IHI Corporation IHI Corporation 3 Key Technologies of Ammonia Utilization in the Energy Market Advanced Combined Cycle Gas Turbines Decomposition of NH3 using part of exhaust heat and H2 is supplied to turbine. Efficiency is equivalent to CH4. Mitsubishi Heavy Industries Engineering / Mitsubishi Power SOFC Industrial Furnaces Marine Diesel Engine NH3 flame Sub Engine 10kW ～200kW JFE Engineering / National Institute of Maritime, Port and Aviation Technology IHI Corporation Taiyo Nippon Sanso Maine Engine 4 Implementation Plan of Clean Fuel Ammonia Value Chain Ammonia Hub Concept PhaseⅠ Collaborate with Carbon Neutral Port Project - Mixed combustion in coal power generation Primary - Development of ammonia supply infrastructure receiving terminal （Primary receiving terminal + domestic delivery system） - Establishment of supply chain （mainly from Australia and USA） Coal boiler PhaseⅡ - Increase of fuel ammonia co-firing ratio in coal power generation - Mixed combustion in natural gas ACCGT ACCGT Distributed power (small & medium GTs, SOFC) Industrial Furnaces Marine Engine NH3 ＜C-free Power Generation＞ Natural Gas +CCS/EOR (Blue) Renewables (Green) - Ammonia single fuel combustion in coal power plants - Ammonia ACCGT - Expansion of mix combustion in coal power generation in Asia （ACCGT ： Advanced Combined Cycle Gas Turbine） 2050 Demand in Japan, more than 30M Tons Australia, USA, Middle East CO2 reduction more than 60M Tons 5 Potential Supplies of Blue and Green Ammonia Japan and Asia Saudi Arabia Canada Oman USA Australia Western, South, Queensland Natural Gas (Blue) Renewables (Green) New Zealand 6 Public-Private Council on Fuel Ammonia Introduction Established : October 2020 under Natural Resources and Fuel Department of METI Interim Report : February 2021 １．Objectives Identifying issues for expanding the use of fuel ammonia, and sharing the roles and timelines of the public and private sectors in solving these issues, with the aim of promoting a unified approach. ２．Members Public sector Private sector Natural Resources and Fuel Department, Agency for Natural Resources and Energy, METI IHI Corporation Japan Oil, Gas and Metals National Corporation (JOGMEC) JERA Co., Inc. Japan Bank for International Cooperation (JBIC) Electric Power Development Co., Ltd. (J-POWER) Nippon Export and Investment Insurance (NEXI) JGC HOLDINGS CORPORATION Nippon Yusen Kabushiki Kaisha (NYK Line) （Observers） Marubeni Corporation Material Industries Division, Manufacturing Industries Bureau, METI MITSUBISHI HEAVY INDUSTRIES, LTD. Ports and Harbours Bureau, Ministry of Land, Infrastructure, Transport and Tourism Mitsubishi Corporation Maritime Bureau, Ministry of Land, Infrastructure, Transport and Tourism The Institute of Energy Economics, Japan (IEEJ) Clean Fuel Ammonia Association (CFAA) 7 Public-Private Council on Fuel Ammonia Introduction Outline of Interim Report - Effective and timely implementation of initiatives by all parties concerned is necessary for the introduction of fuel ammonia on a commercial basis in the late 2020s. - Japanese companies should manage the ammonia supply chain over the medium to long term by securing upstream interests in natural gas and stable renewable power sources for supply security and cost reduction. - Contribution to the decarbonization of the world and Asia where thermal power generation will continue to be significant portion of power supply. - Expected demand in Japan is 3MMtons in 2030, 30MMtons in 2050 and 100MMtons for global supply chain by Japanese companies in 2050. - Targeted price by 2030 is upper 10yen range per Nm3 hydrogen equivalent (upper $1 range per kg). - Development of technologies for ammonia GTs, marine diesel engine, ammonia synthesis. - Establishment of international standards and criteria. 8 Membership List of Clean Fuel Ammonia Association As of April 1, 2021 [Board Member] 11 companies ISHII IRON WORKS Shikoku Electric Power Company [Associate Member (foreign company)] 14 companies [Advisory Member] 3 persons, 25 institutions IHI ITOCHU SHIMIZU A-Enviro Chile GmbH-Austria Energy (AUT) Bunro Shiozawa （ex-SIP Deputy PD) JERA Japan Oil Engineering Showa Denko Baker Hughes (UK, US) Kenichi Aika （ex-SIP Deputy PD) JGC JFE Engineering Sojitz CF Industries (US) Takeo Kikkawa (International University of Japan) Marubeni Corporation JGC Catalysts and Chemicals SUMITOMO CORPORATION DNV GL (NOR) Akita Industrial Technology Center Mitsubishi Corporation Kajima Sumitomo Mitsui Banking Engie - Hydrogen Business Unit (FRA) Ammonia Energy Association （USA） Mitsubishi Heavy Industries KANEMATSU Suzuyo Shoji Equinor ASA (NOR) Austrade Tokyo Office （Embassy） MITSUI & CO. Kawasaki Kisen Kaisha TAIYO NIPPON SANSO Fortescue Metals Group (AUS) Central Research Institute of Electric Power Industry SUMITOMO CHEMICAL Kawasaki Heavy Industries Takenaka Kellogg Brown & Root Asia Pacific Pte. (SIN) CSIRO (AUS) Tokyo Gas Kyushu Electric Power Co.,Inc The Chugoku Electric Power Company NW interconnected Power Pty Ltd (Asian Renewable Energy Hub) (AUS) EJAAD (OMN) Toyo Engineering Maruzen Petrochemical The Kansai Electric Power Company Origin Energy Limited (AUS) Electric Power Research Institute (USA) Ube Industries Mitsubishi Electric thyssenkrupp Uhde Chlorine Engineers Stanwell Corporation (AUS) Embassy of Norway in Tokyo, Japan MITSUBISHI GAS CHEMICAL TOHO GAS The Hydrogen Utility (AUS) Government of Queensland (AUS) [General Member] 72 companies Mitsubishi Materials Tohoku-Electric Power Woodside Energy (AUS) Government of South Australia (AUS) Air Liquide Japan Mitsubishi Power TOKYO ELECTRIC POWER SERVICES Yara International ASA (NOR) Government of Western Australia (AUS) Ajinomoto Mitsui Chemicals Toray Industries Japan Bank for International Cooperation Aramco Asia Japan Mitsui E&S Machinery TOYO KANETSU Japan Coal Energy Center Chiyoda Mitsui O.S.K. Lines TOYOTA CENTRAL R&D LABS Japan Oil, Gas and Metals National Corporation CHUGAI RO MUFG Bank TOYOTA ENERGY SOLUTIONS National Institute of Advanced Industrial Science and Technology （AIST） Cosmo Oil NICHIAS TOYOTA INDUSTRIES New Zealand Embassy, Tokyo, Japan DIAMOND ELECTRIC MFG Nippon Kaiji Kyokai (ClassNK) Toyota Tsusho Corporation [Associate Member (individual)] 8 persons Niihama City EBARA Nippon Paper Industries Uyeno Transtech Fumiteru Akamatsu National Institute of Maritime, Port and Aviation Technology Electric Power Development NIPPON SHOKUBAI Wärtsilä Japan Hideaki Kobayashi Research Institute for Applied Sciences ENEOS NIPPON STEEL YANMAR HOLDINGS Jyun Kubota Shin-Mutsu-Ogawara Inc. HAZAMA ANDO NIPPON STEE Pipeline & Engineering Jyunko Umezawa The Australian Hydrogen Council(AHC) (AUS) Hokkaido Electric Power Nippon Yusen Kiyohiko Nakae The Institute of Applied Energy(IAE) Hokuriku Electric Power Company OBAYASHI Koichi Eguchi The Institute of Energy Economics, Japan Idemitsu Kosan Okinawa Electric Power Norihiko Nakamura The New Zealand Hydrogen Council (NZHC)(NZ) IINO KAIUN Osaka Gas Yoshitsugu Kojima YOKKAICHI CITY IMI Japan Penta-Ocean Construction INPEX Shell Japan 9.