ITOCHU Corporation, a Japan-based trading company, has entered into a memorandum of cooperation (MoC) with Hive Hydrogen South Africa to jointly pursue a green ammonia production project. The collaboration will center around the Coega region in Nelson Mandela Bay, Eastern Cape province, South Africa. Leveraging renewable energy sources, such as wind and solar power, and utilizing existing infrastructure like ports in the area, the project aims to produce and market competitive green ammonia.

The plant, anticipated to be operational by 2028, is set to play a pivotal role in supplying over 900,000 tons of green ammonia annually to Japan, Korea, and Europe in its initial phase. With four phases planned, Hive Hydrogen South Africa is optimistic that its green ammonia pricing for pre-2030 supply will be among the most competitive globally.

Hive Hydrogen South Africa, backed by Hive Energy and Built Africa, commenced operations in September 2019 with the ambitious goal of establishing five large-scale hydrogen and ammonia plants in South Africa. These facilities, powered by 15 GW of renewable energy, are poised to make a significant contribution to the country's sustainable energy landscape.

Thulani Gcabashe, Chairman of Hive, expressed enthusiasm about this collaboration, deeming it a historic milestone for the project. He highlighted the positive impact expected on Nelson Mandela Bay, the Eastern Cape, and South Africa at large. Gcabashe looks forward to working closely with ITOCHU, anticipating meaningful offtake agreements and investments in the project.

This partnership aligns with the agreement on cooperation in hydrogen and ammonia fields signed by Japan and the Republic of South Africa in September 2023. As per this agreement, Japan is committed to supporting international development funding, research initiatives, and private sector participation to establish a sustainable and affordable hydrogen and ammonia supply chain in South Africa.

Notably, this is not the first collaboration between ITOCHU and South Africa in the realm of green ammonia. In the previous year, ITOCHU and Sasol, a South African chemicals and energy company, signed a memorandum of understanding (MoU) to jointly explore and develop the market and supply chain for green ammonia. The focus was particularly on its use as bunkering fuel and for power generation.

ITOCHU, in line with its Medium-term Management Plan, has been actively reinforcing initiatives for establishing supply chains, with a specific emphasis on ensuring a stable ammonia supply. The company is concurrently promoting projects related to the manufacturing and sale of low-carbon ammonia in Canada. Additionally, ITOCHU is advancing efforts in the development of ammonia-fueled ships and the establishment of an international value chain for ammonia fuel for ships. Furthermore, the company is exploring applications of low-carbon ammonia in fertilizer-related processes.