Taiwan Fertilizer and Mitsubishi Heavy Industries to assess ammonia fuel chain

Mitsubishi Heavy Industries, Ltd. (MHI) and Taiwan Fertilizer Co., Ltd. (TFC) have signed a Memorandum of Understanding (MoU) to jointly explore the development of a comprehensive ammonia value chain in Taiwan. This initiative aligns with Taiwan’s ambitious “2050 Net-Zero Emissions” target.

The MoU outlines a collaborative pre-feasibility study focusing on the economic and technical aspects of creating an integrated fuel ammonia system. This system would encompass ammonia reception, storage, handling, delivery, and utilization for power generation. The goal is to establish a robust infrastructure that supports Taiwan’s shift towards low-carbon fuels.

Ammonia, a compound of hydrogen and nitrogen, is increasingly recognized as a viable clean fuel. It serves as an efficient hydrogen carrier and can be combusted directly without CO2 emissions. The establishment of a full-scale ammonia value chain—from production to end-use—will play a crucial role in advancing Taiwan’s carbon neutrality efforts.

In March 2022, Taiwan set a national climate target for achieving carbon neutrality by 2050, emphasizing the reduction of carbon emissions and the promotion of cleaner fuels. In response, TFC has been actively working towards this goal, including the importation of Taiwan’s first low-carbon ammonia in June 2023 and the creation of an Ammonia Energy Division in January 2024.

MHI Group, focusing on energy transition and decarbonization, aims to support the global shift towards a carbon-neutral future. This partnership with TFC is expected to contribute significantly to meeting the decarbonization needs of various sectors, including power generation.

The study will investigate the feasibility of blue ammonia—produced using hydrogen derived from fossil fuels with CO2 capture—and green ammonia—produced using renewable energy without CO2 emissions. The initiative underscores both companies’ commitment to advancing sustainable energy solutions and achieving carbon neutrality.