Mitsui & Co (8031.T), Mitsui Chemicals (4183.T), IHI Corp (7013.T), and Kansai Electric Power Co (9503.T), all based in Japan, have joined forces to embark on a collaborative endeavor. The primary objective of this partnership is to undertake a comprehensive study concerning the establishment of a robust hydrogen and ammonia supply chain within the industrial enclave along the coastline of Osaka.

This collaborative initiative, unveiled on Wednesday, follows closely after Eneos (5020.T) and Osaka Gas (9532.T) made a corresponding announcement regarding their intentions to delve into the development of an expansive e-methane facility. This facility, grounded in green hydrogen technology, is earmarked for the Osaka Bay region.

The consortium of four prominent companies, namely Mitsui & Co, Mitsui Chemicals, IHI Corp, and Kansai Electric Power Co, will be meticulously examining various facets related to the creation of a seamless ammonia supply chain. Ammonia, with its versatile applications including power generation, is the subject of interest for potential utilization across the Osaka expanse. The outcome of this study holds the potential to not only augment ammonia's presence in the Kansai and Setouchi regions but also to contribute to Japan's overarching energy strategy.

Hydrogen and ammonia stand out as pivotal components within Japan's strategic framework to enhance energy security by diminishing reliance on conventional fossil fuels. A significant aspect to note is that both hydrogen and ammonia combustion is devoid of CO2 emissions, thereby aligning with sustainable energy goals.

Mitsui, as the largest ammonia importer in Japan, naturally plays a significant role in this endeavor. The collaboration's intent to delve into options encompassing the receipt, storage, and distribution of ammonia underscores its multi-dimensional approach to fostering a resilient supply chain.

In a parallel trajectory, another coalition has taken shape in the form of Tokyo Gas Co (9531.T), Osaka Gas Co (9532.T), Toho Gas Co (9533.T), Mitsubishi Corp (8058.T), and Sempra Infrastructure Partners LP. This collective alliance, too, is committed to exploration, focusing on e-methane exports to Japan originating from the United States.

The core of this project revolves around the establishment of a facility capable of generating 130,000 metric tons of e-methane annually. This output would stem from facilities based in Texas or Louisiana in the United States. The produced e-methane would then undergo liquefaction at the nearby Cameron liquefied natural gas (LNG) terminal before being dispatched to Japan, with the commencement of operations anticipated by the year 2030.

To put this capacity into perspective, the projected annual production of 130,000 metric tons aligns with 1% of the collective annual gas demand for Tokyo Gas, Osaka Gas, and Toho Gas. However, specific investment figures were not disclosed in the joint statement released by the five participating companies.

This twofold initiative encapsulates the dynamism within the energy sector, mirroring a broader global trend towards sustainable and cleaner energy solutions. The collaborative nature of these efforts, bringing together various players, underscores the complexity and interdependence in creating efficient and eco-friendly energy supply chains.