Japan will utilize ammonia in the fuel mix for thermal power generation as well as for shipping at the end of 2020 to achieve carbon neutrality by 2050.

The Director-General of Oil, Gas and Mineral Resources at the Ministry of Economy, Ryo Minami, mentioned that “ammonia is expected to be introduced as fuels on a commercial basis for thermal power generation and shipping in the late 2020s, and it is expected to be used for a significant amount by around 2030.” Additionally, Japan set the fuel ammonia council to explore ways of expanding its supply chain as it considers ammonia as one of the fuels that could be burnt together with coal, with potential demand equal to the current global trade volume of 20 million tons (mmt/y).

It should be noted that Japan’s latest outlook for using ammonia as a zero CO2 emissions fuel comes as the country develops technologies to eliminate the combustion of NOx. Japan currently consumes about 1 million tons per year (mmt/y) of ammonia, of which about 200,000 mmt is imported. The country also plans to begin testing 20% of ammonia combustion from fiscal year (FY) 2021/22.