Under this MoU, MHI and TFC will assess facilities and economic feasibility of the fuel ammonia value chain, including ammonia receiving, storage, handling, and delivery to power plants, as well as using ammonia as a fuel for power generation. Through this study, both companies aim to lay a strong foundation for a robust ammonia value chain in Taiwan.
Ammonia, a compound comprised of hydrogen and nitrogen, serves as an efficient carrier for transporting hydrogen and can also be directly combusted as a fuel without producing CO2. As ammonia emerges as a clean fuel of the future, the establishment of a comprehensive value chain, from production to utilisation, will greatly contribute to achieving a carbon-neutral society.
In March 2022, the Taiwanese government announced its climate target to achieve carbon neutrality by 2050, with a focus on reducing carbon emissions and promoting the adoption of less carbon intensive fuels. To achieve this, TFC is committed to promoting the use of blue ammonia(Note1) and green ammonia(Note2) as a fuel in Taiwan, as demonstrated by its importation of Taiwan's first low-carbon ammonia(Note3) in June 2023 and establishment of an Ammonia Energy Division in January 2024.
MHI Group is pursuing a growth strategy in the area of Energy Transition, aiming for decarbonisation on the energy supply side to support the Company's goal of achieving Carbon Neutrality by 2040. Through this collaboration with TFC, MHI Group will support the establishment of the fuel ammonia value chain in Taiwan to meet the decarbonisation needs of various industries, including the power generation sector, and as a way of contributing to the achievement of a sustainable, Carbon Neutral world.
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