In line with the carbon neutral ambitions of Prime Minister Yoshihide Suga for 2050, Japan's Ministry of Economy, Trade and Industry today detailed procurement strategies to ensure that the country's power and shipping industries use 30 million tonnes of ammonia by 2050.

The goal is to begin commercial use of ammonia this decade, and to halve fuel prices by 2030.

Realizing the tightness of the LNG markets in recent months, the ministry has accelerated its need to seek alternate fuels.

Ryo Minami, the ministry's director-general of oil, gas and mineral resources, said he sees ammonia as "the second LNG" to introduce new fuel to the Japanese-led world. Currently, Japan uses 1 million tons of ammonia a year, one fifth of which is imported.

Ammonia is a hydrogen and nitrogen combination. Japan kicked off the world's first regular liquefied hydrogen shipping route this year, taking the super chilled fuel from Australia to a specially developed terminal in Kobe on a brand new type of ship.

Japan signed its first ammonia fuel cooperation agreement in January with the state-owned Abu Dhabi National Oil Co. (ADNOC).

Maritime Business World