Electricity from ammonia? Japan believes in the future of green fuel

Japan continues to count on significant growth in the use of "clean" ammonia in industry and energy, including direct combustion in power plants. However, according to the Ministry of Economy, Trade and Industry (METI), among other things, the cost gap between this fuel and traditional fossil fuels will need to be addressed. The international news service Argus reported.

Japan published a plan to accelerate the development and deployment of technologies for generating electricity from ammonia in mid-2021, saying these would include coal-fired boilers capable of co-firing an ammonia share of more than 50%, as well as gas turbines running on pure ammonia. Both technologies are expected to be ready for commercial use by 2030.

Jera, Japan's largest power producer, for example, tested co-firing a 20% share of ammonia last year in one of the gigawatt-scale units at the Hekinan coal-fired power plant. According to information released, the three-month test was successful.

Renewables and electric vehicles won't solve everything

In the meantime, Japan's Ministry of Economy, Trade and Industry (METI) is working on measures to address the cost gap between "clean" ammonia and traditional fossil fuels. According to information released, talks are currently under way between the ministry and 27 applicants for support on setting up a scheme based on so-called Contracts for Difference (CfD).

"Renewables and electric vehicles cannot solve everything, so we expect significant demand for hydrogen and ammonia in heavy industry, road freight, thermal power plants and other sectors," said Japan's Minister of Economy, Trade and Industry, Daisuke Hirota.

Under Japan's updated hydrogen strategy, domestic demand for ammonia is expected to rise from around one million tonnes a year currently to three million tonnes by 2030 and then to 20 million tonnes in 2050.

Researchers at BloombergNEF (BNEF) said at the end of 2022, commenting on Japan's plans, that using ammonia to generate electricity would likely be a cost-ineffective decarbonisation pathway. They said Japan would be better off reducing CO2 emissions from power generation by using wind and solar power plants combined with battery storage.