Japan – MHI Commences Feasibility Studies on Use of Ammonia for Power Generation in Indonesia

Mitsubishi Heavy Industries, Ltd. (MHI), with support from its power solutions brand, Mitsubishi Power, has begun a feasibility study on the use of ammonia as fuel for power plants in Indonesia.

The two proposals to carry out this study were recently adopted by Japan’s Ministry of Economy, Trade and Industry (METI), to uncover and leverage the advanced technologies and expertise of Japanese companies to meet new global demands for infrastructure and contribute to global socioeconomic development. This is part of efforts to support energy decarbonization in the country through the Asia Energy Transition Initiative (AETI)(1).

These two studies will examine the feasibility of utilizing ammonia(2) at the Suralaya coal-fired power station and at an existing natural gas-fired power station in the country, derived from the abundant oil and natural gas produced in Indonesia, with the goal of establishing an integrated ammonia value chain encompassing production, transport, fuel consumption, and CO2 storage.

The two proposals selected by METI for its “Feasibility Studies for the Overseas Deployment of High-quality Energy Infrastructure (Projects to Survey the Promotion of Overseas Infrastructure Development by Japanese Corporations)” are the “Survey of the Feasibility of Ammonia Mixed Fuel Combustion at the Suralaya Power Station in Indonesia and Evaluation of the Overall Value Chain” (the “Suralaya Project”), and the “Survey of the Feasibility of Retrofitting an Existing Natural Gas-fired Power Station in Indonesia to Introduce Power Generation Using Ammonia and the Establishment of a Value Chain” at an existing natural gas-fired power station (the “Existing Natural Gas-fired Power Station Project”). Both proposals will examine the potential reduction of CO2 resulting from energy generation and its effects. The potential global impact, and high degree of utility and innovativeness of these feasibility studies, are regarded as significant to policies involving the Japanese government.

The main objective of the Suralaya Project is to calculate the economic efficiency of the envisioned process of transporting ammonia produced in Indonesia to the power station and consuming it as fuel for generating power. The project will be conducted jointly with Mitsubishi Corporation and Nippon Koei Co., Ltd., with operations expected to begin around 2030.

The main objective of the Existing Natural Gas-fired Power Station Project is to calculate the economic efficiency of transporting ammonia and hydrogen produced in Indonesia to a nearby existing natural gas-fired power station as a fuel to generate power. The project will be conducted jointly with Tokyo Electric Power Services Co., Ltd. (TEPSCO), with operations expected to begin in the second half of this decade.

Both projects will examine the effectiveness of CO2 reductions throughout the value chain, with MHI focusing primarily on the outcome of introducing ammonia power generation technologies. In addition, MHI plans to conduct a feasibility study based on institutional support measures such as financial support from the Japanese government, and decarbonization efforts and carbon pricing by Indonesia. Through the implementation of these projects, MHI hopes to contribute to the expansion of energy infrastructure exports from Japan.

Indonesia has announced a policy of deriving 23% of its power supply from renewable energy by 2025, and 28% by 2035. MHI and Mitsubishi Power will make a concerted effort as a corporate group, working in cooperation with Indonesia’s state-owned power company group and the Bandung Institute of Technology (ITB), to support approaches that help the country achieve its targets.

Going forward, with encouragement from METI’s adoption of these feasibility studies, MHI and Mitsubishi Power will contribute to further decarbonization in Indonesia, and provide momentum for the global deployment of the company’s net zero energy transition policy through the projects.

(1) The Asia Energy Transition Initiative (AETI) was announced by the Government of Japan in May 2021 and aims to promote carbon neutrality in Asia while simultaneously achieving sustainable economic growth.
(2) Blue hydrogen, which has no greenhouse effect, is obtained by splitting natural gas or similar material into hydrogen (H2) and carbon dioxide (CO2), either by steam methane reforming (SMR) or auto thermal reforming (ATR), with the CO2 captured and stored rather than released into the atmosphere. Combining this with nitrogen (N2) produces blue ammonia (NH3), which also has no greenhouse effect. Blue ammonia will be used in the two projects.

About MHI Group

Mitsubishi Heavy Industries (MHI) Group is one of the world’s leading industrial groups, spanning energy, smart infrastructure, industrial machinery, aerospace and defense. MHI Group combines cutting-edge technology with deep experience to deliver innovative, integrated solutions that help to realize a carbon neutral world, improve the quality of life and ensure a safer world. For more information, please visit www.mhi.com or follow our insights and stories on spectra.mhi.com.

Copyright ©2022 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Joint Feasibility Study on the Commercialization of Sustainable Aviation Fuel

ENEOS Corporation and Mitsubishi Corporation have agreed to undertake a joint feasibility study aimed at commercializing Sustainable Aviation Fuel (SAF) and other next-generation fuels in Japan.

This study aims to build a supply chain for SAF, which requires cross-industrial collaboration, by leveraging both companies’ respective strengths. These include ENEOS’ manufacturing technologies and distribution networks, together with MC’s global expertise in raw material sourcing and marketing capabilities.

After formulating a basic strategy that takes into account the maturity of various SAF manufacturing technologies and the necessary time for commercialization, ENEOS and MC will proceed with the study based on the following three approaches:

(1) Developing sustainable feedstock derived from bio-based raw materials
(2) Producing SAF with newly emerging techniques
(3) Building a supply chain for next generation fuels, with a focus on SAF

In the aviation industry, there is growing momentum towards the adoption of SAF in Europe and North America in order to align with CORSIA*, Carbon Offsetting and Reduction Scheme for International Aviation that will commence in 2027. This would drive the growth of the SAF market on a global scale going forward.

In addition, the Japanese government has proposed a target to replace 10 percent of the jet fuels consumed by Japanese airlines with SAF by 2030. This makes establishing a SAF supply chain in Japan an urgent issue.

ENEOS and MC put a high priority on addressing climate change issues, and both companies are actively promoting initiatives to reduce CO2 emissions with the aim of helping to achieve a decarbonized, circular society.

By proceeding with this study as part of the above efforts, ENEOS and MC will be steadily contributing toward the early establishment of a supply chain for next-generation fuels.

*An environmental measure in the aviation industry: In 2016, the International Civil Aviation Organization (ICAO) adopted at its annual meeting the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) aiming to achieve international aviation growth without increasing CO2 emissions from 2021.

Inquiry Recipient:
Mitsubishi Corporation

Topic: Press release summary

Canada – Feasibility Assessment for a Proposed National Marine Conservation Area Reserve in British Columbia’s Central Coast

Feasibility Assessment for a Proposed National Marine Conservation Area Reserve in British Columbia’s Central Coast.

The Government of Canada is committed to protecting and conserving Canada’s oceans for future generations by investing in nature-based solutions such as marine protected areas and other effective conservation measures. In support of biodiversity and efforts to mitigate impacts due to climate change, Canada is taking action to conserve marine and coastal waters in collaboration with Indigenous peoples, the provinces and territories, and other key partners. Canada is committed to protecting biodiversity and conserving 25 percent of marine and coastal areas by 2025, working toward 30 percent by 2030, with an approach that is grounded in science, Indigenous knowledge and local perspectives.

Under Budget 2021, an historic investment was made to protect the health of our oceans, including $976.8 million in funding over five years to reach ambitious marine conservation targets. Moving forward, the Government of Canada is committed to taking a coordinated approach to working together to protect and conserve our oceans for the benefit of all Canadians, in partnership with provincial, territorial, and Indigenous governments, while consulting with key stakeholders and coastal communities.

Description of the Region

The study area for the proposed national marine conservation area reserve is 14,200 square kilometres in size, and located in the coastal and offshore marine waters adjacent to the Great Bear Rainforest, on the Central Coast of British Columbia.

This region represents a large diversity of habitats and communities ranging from highly scenic fjords, long sand beaches, white shell midden beaches, archipelagos and straits, to open sea. The area encompasses a high concentration of marine mammal species, including various species at risk, and some of the largest kelp beds in British Columbia, which are important spawning areas for herring and provide critical habitat for juvenile salmon, juvenile rockfish.

For millennia, the wellbeing of the Heiltsuk, Kitasoo/Xai’Xais, Nuxalk and Wuikinuxv have been linked, inextricably, to the health of the marine environment. Management and utilization of abundant marine resources, particularly salmon, eulachon and herring, supported ancient civilizations and allowed rich and complex cultures and societies to develop. Archaeologists have dated the origins of village sites on the Central Coast to as far back as 14,000 years – making them some of the oldest continually occupied sites in Canada. Pre-contact, the Central Coast supported some of the highest population concentrations in North America.

Today, community members of the Heiltsuk, Kitasoo/Xai’Xais, Nuxalk and Wuikinuxv continue to honour their responsibility as caretakers of the marine environment. The life blood of the Nations’ communities comes from the existence of a network of diverse and healthy species, populations, and areas. Maintaining and restoring marine ecosystems will support not just Nations’ physical health but is inextricably connected to cultural health and continuity.

The study area for the proposed national marine conservation area reserve is adjacent to the terrestrial protection afforded by the Great Bear Rainforest. If the feasibility assessment process demonstrates support for a new national marine conservation area reserve, the potential result would be a terrestrial and marine protected area complex that would respect the indivisibility between marine and terrestrial environments inherent to Indigenous perspectives, as well protecting an intact ecosystem that could mitigate the impact of climate change. 

Under the Canada National Marine Conservation Areas Act and the Parks Canada Agency Act, Parks Canada’s goal is to establish a system of national marine conservation areas to protect and conserve representative examples of each of Canada’s 29 unique marine regions. The proposed study area represents the Queen Charlotte Sound marine region. The consensus among First Nations, and the governments of Canada and British Columbia on the significance of this area demonstrates the importance of considering the results of western science and Indigenous knowledge in planning new marine protected areas including national marine conservation area and national marine conservation area reserves.

National Marine Conservation Areas

Canada has over 243,000 km of coastline along three oceans and another 9,500 km along the Great Lakes – the longest coastline in the world. The vast marine ecosystems off these coasts are varied, productive – and precious. As a maritime nation, whose geography, culture and history have been shaped by this marine legacy, Canada has a responsibility to protect examples of this marine heritage for present and future generations.

National Marine Conservation Areas (NMCAs) are established and managed to protect representative examples of marine regions in Canada for the benefit, education and enjoyment of Canadians and the world.

Activities such as harvesting of renewable sources, including fishing (except for bottom trawling) and hunting, commercial shipping, marine transportation and a range of recreation and tourism activities are permitted in a national marine conservation area, if the activity does not impair the long-term health of the ecosystem.

To protect based on Indigenous Knowledge, Modern Science, and Collaborative Management

By working with the Heiltsuk, Kitasoo/Xai’xais, Nuxalk, and Wuikinuxv Nations to explore the feasibility of establishing a national marine conservation area reserve, the Governments of Canada and British Columbia can protect biodiversity, mitigate climate change, and strengthen relationships with Indigenous people.

The undertaking of a feasibility assessment for a national marine conservation area reserve on the Central Coast of British Columbia represents a valuable opportunity to apply the rich cultural knowledge of the local First Nation communities for the protection of an area that hosts a wide range of biodiversity and a rich Indigenous history.

Parks Canada is committed to reconciliation and working in partnerships with Indigenous peoples in the establishment and management of national marine conservation areas and national marine conservation area reserves. If the outcome of the feasibility assessment demonstrates support, Parks Canada and the Heiltsuk, Kitasoo/Xai’xais, Nuxalk, and Wuikinuxv Nations will then look to define the relationships and the roles and responsibilities in the management of a future national marine conservation area reserve. All management actions would acknowledge, respect and draw on Indigenous and scientific knowledge in an equitable and appropriate manner.

Feasibility Assessment

A feasibility assessment includes extensive consultation and is designed to help determine whether establishing a national marine conservation area reserve is both practical and desirable. The feasibility assessment provides the opportunity for partners, stakeholders and the public to contribute information and share knowledge and expertise.

The result of the feasibility assessment will inform future decisions about whether the proposal will continue and under what terms and conditions, including proposed boundaries. If the feasibility assessment process demonstrates support for a national marine conservation area reserve, establishment agreements with the concerned provincial and First Nations governments are negotiated to set out the terms and conditions under which the national marine conservation area reserve will be established and managed.

Alignment with Marine Protected Area Network Planning

A national marine conservation area reserve in the Central Coast is considered to be an important element of the potential marine protected area network being planned for the Pacific Region’s Northern Shelf Bioregion. Parks Canada, BC, and the Heiltsuk, Kitasoo/Xai’xais, Nuxalk, and Wuikinuxv Nations are partners in the development of this planned approach to marine conservation in the Northern Shelf.  Consultation on this broader network process is anticipated later in 2021 with the goal of completing the Network Action Plan by June 2022. Input from this consultation will provide important feedback for consideration in the Central Coast National Marine Conservation Area Reserve feasibility assessment process.

Next Steps

Parks Canada, the Government of British Columbia and the Heiltsuk, Kitasoo/Xai’xais, Nuxalk, and Wuikinuxv Nations will work to determine if the establishment of a proposed national marine conservation area reserve is feasible. This work will involve engagement with other government departments, including Fisheries and Oceans Canada and Transport Canada, as they will continue to manage for marine conservation, public safety, fisheries, and shipping within the national marine conservation area reserve, if implemented.

Now that the MOU is signed, the next step is the establishment of a Steering Committee and development of a work plan to ensure that adequate studies and stakeholder consultation is undertaken to assess the socio-economic, cultural, environmental and ecosystem benefits and impacts of establishing a protected area in the Central Coast of British Columbia.


Toyota: Feasibility Study on the Receiving and Distribution Business of Imported Hydrogen in Chubu Regio

Sumitomo Corporation, Chiyoda Corporation, Toyota Motor Corporation, Japan Research Institute, Limited, and Sumitomo Mitsui Banking Corporation (collectively, “Joint Contractors”) have been appointed by the New Energy and Industrial Technology Development Organization (“NEDO”) to conduct a feasibility study on the receiving and distribution business of hydrogen in Chubu Region (“Study”). NEDO selected the Joint Contractors in the public offeriing for “Development of Technologies for Realizing a Hydrogen Society/Regional Hydrogen Utilization Technology Development/Hydrogen Production and Utilization Potential Research” and the Study is scheduled to be conducted during FY2021 and FY2022.
In order to promote the utilization of hydrogen in Japan, it is essential not only to produce hydrogen domestically, but also to import large volumes of hydrogen from cost competitive areas. To materialize large volume of imports, it is important to build supply chains from import terminals to demand locations, and to put priority on identifying challenges and find its solutions.

Building on the previous study of potential hydrogen demand in Chubu region by the Hydrogen Utilization Study Group (“Study Group”) conducted in February 2021, this Study will focus on developing a large-scale hydrogen supply chain. The Study will also address the economic viability of the large-scale receving and distribution business and sort out financial, technical and regulatory challenges for commercialization assuming that hydrogen is imported in the Chubu region.

Iwatani Corporation, Chubu Electric Power Co., Inc., Toho Gas Co., Ltd., Air Liquide Japan G.K., and Mitsubishi Chemical Corporation (collectively “Cooperation Companies”), as a member of Chubu Hydrogen Utilization, and Joint Contractors have formed the consortium to complete this Study. And also cooperation of other member companies in the Study Group (Idemitsu Kosan Co., Ltd., ENEOS Corporation, Kawasaki Heavy Industries, Ltd., JFE Engineering Corporation, Nippon Steel Corporation) is expected to deepen the Study.

To achieve the Study Group’s goal, “Social implementation of hydrogen in Chubu Region in 2025” in line with carbon neutrality in Japan in 2050, further progress toward FEED (Front End Engineering Design) stage will be considered with the completion of this Study.

Topic: Press release summary