Mitsubishi Heavy Industries and Taiwan Fertilizer sign MoU for pre-feasibility Ammonia Study

Mitsubishi Heavy Industries (MHI) and Taiwan Fertilizer Co. (TFC) have forged a strategic partnership to conduct a comprehensive pre-feasibility study on the development of an ammonia value chain within Taiwan. This collaborative endeavor aligns with Taiwan's ambitious target of achieving net-zero emissions by 2050. By pooling their respective strengths and expertise, MHI and TFC aim to identify optimal opportunities for ammonia production, distribution, and utilization within the Taiwanese market. This joint venture underscores the growing importance of ammonia as a clean energy carrier and its potential to play a pivotal role in decarbonization strategies.

Under this Memorandum of Understanding (MoU), MHI and TFC will evaluate the facilities and economic viability of the entire fuel ammonia value chain. This assessment will cover ammonia reception, storage, handling, and delivery to power plants, as well as its potential use as a fuel for power generation. The objective of this collaboration is to establish a solid foundation for a resilient ammonia value chain in Taiwan.

Ammonia, a compound composed of hydrogen and nitrogen, is emerging as a pivotal component of the global transition to a low-carbon economy. Its unique properties, including high hydrogen density and carbon-free combustion, make it a promising energy carrier and fuel source. To fully harness ammonia's potential, a comprehensive ecosystem encompassing production, transportation, storage, and end-use applications must be established.

MHI Group is advancing its growth strategy in Energy Transition with a focus on decarbonizing energy supplies to achieve Carbon Neutrality by 2040. In partnership with TFC, MHI Group aims to develop a robust fuel ammonia value chain in Taiwan. This collaboration will address the decarbonization requirements of various industries, particularly the power generation sector, and contribute to the creation of a sustainable, carbon-neutral world. By supporting the establishment of this value chain, MHI Group is reinforcing its commitment to environmental sustainability and playing a pivotal role in the global effort to reduce carbon emissions.

In March 2022, the Taiwanese government set an ambitious climate target to achieve carbon neutrality by 2050, emphasizing the reduction of carbon emissions and the adoption of lower-carbon fuels. To support this goal, TFC is dedicated to advancing the use of blue ammonia and green ammonia as alternative fuels in Taiwan. This commitment was highlighted by the importation of Taiwan's first low-carbon ammonia in June 2023, marking a significant step toward sustainable energy. Additionally, in January 2024, TFC established an Ammonia Energy Division, further underscoring its focus on developing and promoting ammonia-based energy solutions to drive Taiwan’s carbon reduction efforts.