Fortescue subsidiary to investigate green ammonia supply chain between Australia and Japan

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Fortescue Future Industries (FFI), a wholly owned subsidiary of Fortescue Metals Group, has signed a Memorandum of Understanding (MOU) with IHI Corporation (IHI) and its subsidiary IHI Engineering Australia (IEA) to examine the opportunity of establishing green ammonia supply chains between Australia and Japan.

IHI Corporation is a Japanese heavy-industry manufacturer which is proactively involved in both the technological development of the use of hydrogen and ammonia, as well as the development of its supply chain.

IHI Engineering Australia was established as a subsidiary of IHI Corporation to support the construction of the BHP Steel Port Kembla No. 5 blast furnace and has since diversified into several industries in Australia-Oceania including metal works, port handling facilities, coal fired boilers, gas turbines, oil & gas and food processing industries.

FFI CEO Julie Shuttleworth said the 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.

“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,” Ms Shuttleworth said.

“Japan is a priority market for green ammonia exports.

“By leveraging our value chain and market access as well as the skills and capability of our people to rapidly develop complex projects, FFI is well placed to meet the future demand of green ammonia.”

IHI President and CEO Hiroshi Ide added:

“Australia, with an abundance of renewable energy, is a very promising location for large scale ammonia production.”

“IHI will contribute to realizing a carbon-free society by merging our ammonia combustion and production technology together with green ammonia,” Mr Ide concluded.

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