Establishment of the "Council for the Introduction and Utilization of Fuel Ammonia through the Namikata Terminal as a Hub"

2023.04.14

Shikoku Electric Power Company, Incorporated, Taiyo Oil Co., Ltd., Taiyo Nippon Sanso Corporation, Mazda Motor Corporation, Mitsubishi Corporation, Namikata Terminal Co, Ltd., and Mitsubishi Corporation Clean Energy Ltd. have agreed to establish the "Council for the Introduction and Utilization of Fuel Ammonia through the Namikata Terminal as a Hub" (hereinafter referred to as 'the Council') with Mitsubishi Corporation and Shikoku Electric Power Company serving as joint secretariats, in order to study the conversion of the Namikata Terminal*1, located in Imabari City, Ehime Prefecture, into a clean energy supply hub. The Council will include observers from Ehime Prefecture, Imabari City, Saijo City, Niihama City, and Shikokuchuo City.

The Council will study the conversion of the existing LPG tanks at the Namikata Terminal into ammonia tanks, aiming to handle approximately 1 million tons of ammonia per year by 2030. The Council will also discuss the schedule, regulatory issues, the efficient utilization of the Namikata Terminal, and measures to expand demand.

Since the Japanese government's declaration of carbon neutrality by 2050, expectations for ammonia have been increasing, such as the use of ammonia co-firing at thermal power plants, heat power use in general industries, and ammonia cracking technology*2 at hydrogen stations. We believe that the Namikata Terminal can play an important role as a hub supply point for the establishment of an efficient supply chain for such utilization of ammonia in the Shikoku and Chugoku regions.

 The Namikata Terminal handles approximately 1 million tons of LPG and petroleum products brought in from Japan and abroad each year. In addition to its track record and experience as an energy hub for over 40 years, it is equipped with multiple large-scale low-temperature LPG tanks (45,000 tons/unit) that can be converted into ammonia tanks, and berths that can accommodate large vessels, enabling quick response to the region’s demand for ammonia.

The Council aims to realize the transformation of the Namikata Terminal into a clean energy supply hub in collaboration with the government and the private sector, contributing to the creation of new clean energy industries in the region and the sustainable development of the regional economy.

※1
Some petroleum-related facilities of the terminal are owned by Taiyo Oil Co., Ltd., and the others are owned by Mitsubishi Corporation. The Namikata Terminal is operated by Namikata Terminal Co, Ltd.

※2
Technology to extract hydrogen from ammonia

Namikata Terminal

  • Photo Credit: Namikata Terminal Co, Ltd.

Outline of Each Company and Its Relationship with the Council

Shikoku Electric Power Company
Year of Establishment 1951
Headquarters 2-5 Marunouchi, Takamatsu City, Kagawa Prefecture
Representative Keisuke Nagai, Director and President
Business Description In addition to electric power generation, sales, transmission and distribution, the company also focuses on the information and telecommunications business and international business.
Relationship with the Council Studying the possibility of introducing ammonia at thermal power plants to reduce carbon emissions and decarbonize the industry.
Taiyo Oil Co., Ltd.
Year of Establishment 1941
Headquarters 2-2-3, Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative Yutaka Oka, President & CEO
Business Description A petroleum wholesaler with the only oil refinery in Shikoku. Importing petroleum and manufacturing and selling petroleum products and petrochemical products. Operating service stations under the SOLATO brand, mainly in western Japan.
Relationship with the Council Studying new projects such as hydrogen stations and the other use of ammonia and hydrogen at Shikoku Operations, etc
Taiyo Nippon Sanso Corporation
Year of Establishment 1910
Headquarters 1-3-26 Koyama, Shinagawa-ku, Tokyo
Representative Kenji Nagata, President
Business Description Manufacturing and sales of various industrial gases such as oxygen, nitrogen, and argon, LP gas, medical gases, specialty gases, as well as gas fusing equipment and materials, gas-related equipment, and air separation equipment; and assembly, processing, and inspection of electronic components, and facility maintenance.
Relationship with the Council Studying the use of purification technology for ammonia decomposition hydrogen and the application of hydrogen station technology and knowledge.
Mazda Motor Corporation
Year of Establishment 1920
Headquarters

3-1 Shinchi, Fuchu-cho, Aki-gun, Hiroshima Prefecture

Representative

Akira Marumoto, Representative Director, President and CEO

Business Description

Manufacturing of passenger cars and sales of passenger cars and trucks.

Relationship with the Council

Studying the use of ammonia as a carbon reduction and decarbonization measure for the in-house power generation facilities at Mazda's plants in cooperation with Mitsubishi Corporation Clean Energy.

Mitsubishi Corporation
Year of Establishment

1954

Headquarters

2-3-1 Marunouchi, Chiyoda-ku, Tokyo

Representative

Katsuya Nakanishi, President & CEO

Business Description

Wide range of businesses spanning multiple industries and overseen by Industry DX Group, Next-Generation Energy Business Group and 10 Business Groups: Natural Gas, Industrial Materials, Chemicals Solution, Mineral Resources, Industrial Infrastructure, Automotive & Mobility, Food Industry, Consumer Industry, Power Solution, and Urban Development.

Relationship with the Council

Contributing to the stable supply to Asia, including Japan, by engaging in the manufacturing and trading of ammonia. Also, developing ammonia manufacturing businesses in various parts of the world and studying the establishment of a supply chain for Japan and other countries.

Namikata Terminal Co, Ltd.
Year of Establishment

1980

Headquarters

600, Ko, Namikatachomiyazaki, Imabari City, Ehime Prefecture

Representative

Korin Suzuki, President and Chief Executive Officer

Business Description

Receiving, storage and management of LPG, petrochemicals, and petroleum products, delivery to ship, overland delivery to lorries, analysis, and management and operation of Namikata National LPG Stockpiling Base.

Relationship with the Council

As an energy supply base, supplying LPG and petroleum products throughout western Japan. Owns large-scale low-temperature LPG tanks that can be converted for ammonia and large-ship berths, and studying the establishment of a clean energy supply base.

Mitsubishi Corporation Clean Energy Ltd
Year of Establishment

2022

Headquarters

2-6-1, Marunouchi, Chiyoda-ku, Tokyo

Representative

Takao Fujii, President and CEO

Business Description

Development and operation of renewable energy sources such as onshore wind, solar, and hydropower while aiming for coexistence and co-creation with the local community, as well as providing solutions to customers.

Relationship with the Council

In partnership with Mazda, studying the use of ammonia as part of efforts toward carbon reduction and decarbonization of the in-house power generation facilities at Mazda’s plants.