Fortescue, IHI Study Green NH3 Supply Chain Options b/w Aus & Japan

Three notable companies- Fortescue Future Industries Pty Ltd (FFI), IHI Engineering Australia Pty Ltd (IEA), and IHI Corporation (IHI)- have signed a memorandum of understanding (MOU) for investigation into establishing green ammonia (NH3) supply chains between Australia and Japan.

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The Australian FFI is a subsidiary of Fortescue Metals Group Ltd, which works in culture, innovation and industry-leading development of infrastructure and mining assets. IHI Corporation is a Japanese heavy-industry manufacturer, which is proactively involved in the technological development of the use of hydrogen and ammonia. IHI Engineering Australia Pty Ltd was established as a subsidiary of IHI Corporation to support the construction of the BHP Steel Port Kembla No. 5 blast furnace. Since its establishment, IEA has diversified into several industries in Australia-Oceania including metal works, port handling facilities, coal fired boilers, gas turbines, oil & gas and food processing industries.

The three parties will jointly assess the economic and technical feasibility of supplying green ammonia produced in Bell Bay, Tasmania and transported to Japan for blending into existing power generation. Work under this MOU is an important part of FFI’s feasibility and development program for the 250MW green hydrogen and ammonia Bell Bay project.

FFI Chief Executive Officer Julie Shuttleworth said, “The world’s transition to a clean energy future represents a major growth opportunity and this MOU with IHI and IEA will help position FFI, IHI and IEA at the forefront of the global green industry. Japan is a priority market for green ammonia exports.”

She elaborated that by leveraging their value chain and market access as well as the skills and capability of their people to rapidly develop complex projects, FFI is well placed to meet the future demand of green ammonia.

IHI President and CEO Hiroshi Ide said, “Australia, with an abundance of renewable energy, is a very promising location for large scale ammonia production.”

He added that IHI will contribute to realizing a carbon-free society by merging our ammonia combustion and production technology together with green ammonia.

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