Japan’s JGC boosts efforts to grow ammonia business on hopes of strong demand from shipping
Japanese engineering company JGC Holdings Corporation has partnered with Toyo Engineering to grow its ammonia plant business amid prospects of strong demand from the shipping industry.
PHOTO: Exhaust gases flow from the funnel of a cruise ship. Getty Images
In October 2020, the Japanese government had announced its target of achieving carbon neutrality by 2050 and started promoting a ‘Road Map for Fuel Ammonia’ in February last year.
The government’s focus is on increasing use of ammonia as a shipping fuel as it shows promise to be used as a decarbonized fuel.
In response to this development, several Japanese companies are investing in the ammonia supply chain.
With the latest agreement in place, the duo will conduct feasibility study along with engineering, procurement and construction (EPC) for fuel ammonia production plants and ammonia receiving terminals.
JGC has also signed a license agreement with the American engineering firm KBR to use its ammonia production process.
Last week, Japanese energy companies ENEOS, JERA, and JFE agreed to conduct a study on setting up ammonia and hydrogen supply chain in the Keihin Waterfront Area in Tokyo Bay.
