ITOCHU : Announces the Commencement of a Feasibility Study on the Construction of a Hydrogen/Ammonia Supply Chain in Kitakyushu

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter "ITOCHU") announced today that it has commenced a study of the feasibility of constructing a hydrogen/ammonia supply chain in the seaside district of Hibikinada, Kitakyushu (hereinafter the "Study") as a member of the Fukuoka Prefecture Hydrogen Hub Promotion Council (hereinafter the "Council").^*1

About hydrogen and ammonia

Hydrogen and ammonia are the energy sources that attention is being drawn to as a part of the realization of decarbonization because they do not emit carbon dioxide during combustion. Hydrogen can be used for power generation, as a fuel for ships and automobiles, and used in the production of e-methane (synthetic methane).^*2 However, it is not suitable for long-range high-capacity transportation because of its low density and high volume. Therefore, it is efficient to produce and consume hydrogen locally. Ammonia can be used for purposes such as power generation and as a fuel for ships. Additionally, it is possible to crack ammonia to produce hydrogen.

ITOCHU''s responsibilities in the Study

The Council will study the construction of a hydrogen/ammonia supply chain, including the procurement of ammonia from overseas, hydrogen production in the seaside district in Hibikinada through ammonia cracking and using local resources, and the supply of hydrogen and ammonia to neighboring customers via pipelines. ITOCHU is responsible for (1) overall coordination of the Study, (2) overseas production and supply of ammonia, (3) storage and supply of ammonia in collaboration with Nippon Coke & Engineering Co., Ltd.
Nippon Coke & Engineering Co., Ltd. possesses know-how and infrastructure related to the ammonia production, distribution and transshipment station businesses. ITOCHU has a track record in the hydrogen and ammonia businesses. The two companies' knowledge will be utilized to implement the Study.

Superiority of the seaside district of Hibikinada, Kitakyushu

The seaside district in Hibikinada, Kitakyushu makes efficient pipeline-based hydrogen/ammonia distribution possible, as within a radius of 10 to 15 kilometers there are many bases operating in diverse industries which all face the challenge of decarbonization, including the iron and steel, chemicals, power generation, and gas industries. Within this area, the demand for hydrogen and ammonia is estimated to be equivalent to approximately 90,000 tons of hydrogen in 2030 and approximately 700,000 tons of hydrogen in 2040. Kitakyushu is also one of the municipalities with the highest renewable energy ratio. Renewable energy is necessary for local green hydrogen production, so the region is very competitive in terms of hydrogen production.

ITOCHU has put forth a new management policy, "The Brand-New Deal: Profit is Downstream," and is pursuing a policy of enhancing its contribution to and engagement with the SDGs through business activities" while listening to all stakeholders, including the market, society, and consumers.

Conceptual diagram of the hydrogen/ammonia supply chain and ITOCHU's responsibilities (1 to 3)

Characteristics and uses of hydrogen and ammonia

Features	Applications
Hydrogen	Not suitable for long-range high-capacity transportation despite diverse uses.	Power generation, fuels for ships and automobiles, e-methane (synthetic methane) production
Ammonia	Able to be transported long distances Hydrogen can be produced by breaking down ammonia.	Power generation Marine fuel