“Sustainable Hydrogen Value Chains”Norwegian Hydrogen Association, Innovation Norway, Embassy of Norway

April 21, 2021

Shigeru MURAKIRepresentative Director

Clean Fuel Ammonia Association

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Contribution of Clean Fuel Ammonia for Carbon Neutrality

Utilization

Industrial Furnaces ImplementationDevelopment & Commercialization

Coal Power Plants(~1,000MW)

Marine Engines

SmallGTs Medium

ACCGT

Roadmap of Fuel Ammonia Value Chain

ImplementationLarge-scale Demo& Facility Design

Preparation

0.5-1.0 MMtons 3 MMtons

2021 2025 2030 ～2050

ImplementationDevelopment & Commercialization, Standardization, etc.

Imp lmplementationDevelopment & Commercialization

CCSEOR

Estimated Price from US to JapanUS$340/ton (US$2/kg-H2)

Fossil fuel

FS of Green and Blue Ammonia Supply Chains

Renewable energy

Ammonia production from Renewable energy

30 MMtons

Green Ammonia

Blue Ammonia

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Key Technologies of Ammonia Utilization in the Energy Market

Mix combustion in coal fired boilers・20%-60%NH3 in Coal・Large Scale Demonstration from 2021-23

(20%NH3 in 1GW Coal Power of JERA)

20% NH3 / CH4 flame

Toyota Energy Solutions

3IHI Corporation

【50 kW, 300 KW】NH3 Single Fuel

Gas turbines

IHI Corporation

【2MW】20%-50%NH3 in Natural GasDevelopment of NH3 Single Fuel System by 2025

Key Technologies of Ammonia Utilization in the Energy Market

NH3 flameSOFC Industrial Furnaces

Maine Engine

Sub Engine

Marine Diesel Engine

10kW～200kW

IHI Corporation Taiyo Nippon Sanso

JFE Engineering /National Institute of Maritime, Port and Aviation Technology

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Advanced Combined Cycle Gas Turbines

Mitsubishi Heavy Industries Engineering / Mitsubishi Power

Decomposition of NH3 using part of exhaust heat and H2 is supplied to turbine. Efficiency is equivalent to CH4.

Implementation Plan of Clean Fuel Ammonia Value Chain

Coal boiler

ACCGT

Primaryreceiving terminal

Ammonia Hub ConceptCollaborate with Carbon Neutral Port Project

- Mixed combustion in coal power generation- Development of ammonia supply infrastructure

（Primary receiving terminal + domestic delivery system）

- Establishment of supply chain （mainly from Australia and USA）

PhaseⅠ

（ACCGT ： Advanced Combined Cycle Gas Turbine）

PhaseⅡ- Increase of fuel ammonia co-firing ratio in coal power generation- Mixed combustion in natural gas ACCGT

Distributed power (small & medium GTs, SOFC)

Industrial FurnacesMarine Engine

＜C-free Power Generation＞

- Ammonia single fuel combustion in coal power plants- Ammonia ACCGT- Expansion of mix combustion in coal power generation in Asia

Natural Gas +CCS/EOR (Blue)

NH3

Renewables (Green)

Australia, USA, Middle East2050 Demand in Japan, more than 30M Tons

CO2 reduction more than 60M Tons5

Potential Supplies of Blue and Green Ammonia

Canada

AustraliaWestern, South, Queensland

Renewables (Green)

Natural Gas (Blue)

Oman

Saudi Arabia

USA

Japan and Asia

New Zealand 6

Established : October 2020 under Natural Resources and Fuel Department of METIInterim Report : February 2021

１．ObjectivesIdentifying issues for expanding the use of fuel ammonia, and sharing the roles and timelines of the public and private sectors in solving these issues, with the aim of promoting a unified approach.

２．Members

Public sector Private sector

Natural Resources and Fuel Department, Agency for Natural Resources and Energy, METI IHI Corporation

Japan Oil, Gas and Metals National Corporation (JOGMEC) JERA Co., Inc.

Japan Bank for International Cooperation (JBIC) Electric Power Development Co., Ltd. (J-POWER)

Nippon Export and Investment Insurance (NEXI) JGC HOLDINGS CORPORATION

Nippon Yusen Kabushiki Kaisha (NYK Line)

（Observers） Marubeni Corporation

Material Industries Division, Manufacturing Industries Bureau, METI MITSUBISHI HEAVY INDUSTRIES, LTD.

Ports and Harbours Bureau, Ministry of Land, Infrastructure, Transport and Tourism Mitsubishi Corporation

Maritime Bureau, Ministry of Land, Infrastructure, Transport and Tourism The Institute of Energy Economics, Japan (IEEJ)

Clean Fuel Ammonia Association (CFAA)

Public-Private Council on Fuel Ammonia Introduction

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Public-Private Council on Fuel Ammonia Introduction

Outline of Interim Report- Effective and timely implementation of initiatives by all parties concerned is necessary

for the introduction of fuel ammonia on a commercial basis in the late 2020s.

- Japanese companies should manage the ammonia supply chain over the medium to long term by securing upstream interests in natural gas and stable renewable power sources for supply security and cost reduction.

- Contribution to the decarbonization of the world and Asia where thermal power generation will continue to be significant portion of power supply.

- Expected demand in Japan is 3MMtons in 2030, 30MMtons in 2050 and 100MMtons for global supply chain by Japanese companies in 2050.

- Targeted price by 2030 is upper 10yen range per Nm3 hydrogen equivalent (upper $1 range per kg).

- Development of technologies for ammonia GTs, marine diesel engine, ammonia synthesis.

- Establishment of international standards and criteria.

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As of April 1, 2021[Board Member] 11 companies ISHII IRON WORKS Shikoku Electric Power Company [Associate Member (foreign company)] 14 companies [Advisory Member] 3 persons, 25 institutions

IHI ITOCHU SHIMIZU A-Enviro Chile GmbH-Austria Energy (AUT) Bunro Shiozawa （ex-SIP Deputy PD)

JERA Japan Oil Engineering Showa Denko Baker Hughes (UK, US) Kenichi Aika （ex-SIP Deputy PD)

JGC JFE Engineering Sojitz CF Industries (US) Takeo Kikkawa (International University of Japan)

Marubeni Corporation JGC Catalysts and Chemicals SUMITOMO CORPORATION DNV GL (NOR) Akita Industrial Technology Center

Mitsubishi Corporation Kajima Sumitomo Mitsui Banking Engie - Hydrogen Business Unit (FRA) Ammonia Energy Association （USA）

Mitsubishi Heavy Industries KANEMATSU Suzuyo Shoji Equinor ASA (NOR) Austrade Tokyo Office （Embassy）

MITSUI & CO. Kawasaki Kisen Kaisha TAIYO NIPPON SANSO Fortescue Metals Group (AUS) Central Research Institute of Electric Power Industry

SUMITOMO CHEMICAL Kawasaki Heavy Industries Takenaka Kellogg Brown & Root Asia Pacific Pte. (SIN) CSIRO (AUS)

Tokyo Gas Kyushu Electric Power Co.,Inc The Chugoku Electric Power Company NW interconnected Power Pty Ltd (Asian Renewable Energy Hub) (AUS) EJAAD (OMN)

Toyo Engineering Maruzen Petrochemical The Kansai Electric Power Company Origin Energy Limited (AUS) Electric Power Research Institute (USA)

Ube Industries Mitsubishi Electric thyssenkrupp Uhde Chlorine Engineers Stanwell Corporation (AUS) Embassy of Norway in Tokyo, Japan

MITSUBISHI GAS CHEMICAL TOHO GAS The Hydrogen Utility (AUS) Government of Queensland (AUS)

[General Member] 72 companies Mitsubishi Materials Tohoku-Electric Power Woodside Energy (AUS) Government of South Australia (AUS)

Air Liquide Japan Mitsubishi Power TOKYO ELECTRIC POWER SERVICES Yara International ASA (NOR) Government of Western Australia (AUS)

Ajinomoto Mitsui Chemicals Toray Industries Japan Bank for International Cooperation

Aramco Asia Japan Mitsui E&S Machinery TOYO KANETSU Japan Coal Energy Center

Chiyoda Mitsui O.S.K. Lines TOYOTA CENTRAL R&D LABS Japan Oil, Gas and Metals National Corporation

CHUGAI RO MUFG Bank TOYOTA ENERGY SOLUTIONS National Institute of Advanced Industrial Science and Technology （AIST）

Cosmo Oil NICHIAS TOYOTA INDUSTRIES New Zealand Embassy, Tokyo, Japan

DIAMOND ELECTRIC MFG Nippon Kaiji Kyokai (ClassNK) Toyota Tsusho Corporation [Associate Member (individual)] 8 persons Niihama City

EBARA Nippon Paper Industries Uyeno Transtech Fumiteru Akamatsu National Institute of Maritime, Port and Aviation Technology

Electric Power Development NIPPON SHOKUBAI Wärtsilä Japan Hideaki Kobayashi Research Institute for Applied Sciences

ENEOS NIPPON STEEL YANMAR HOLDINGS Jyun Kubota Shin-Mutsu-Ogawara Inc.

HAZAMA ANDO NIPPON STEE Pipeline & Engineering Jyunko Umezawa The Australian Hydrogen Council(AHC) (AUS)

Hokkaido Electric Power Nippon Yusen Kiyohiko Nakae The Institute of Applied Energy(IAE)

Hokuriku Electric Power Company OBAYASHI Koichi Eguchi The Institute of Energy Economics, Japan

Idemitsu Kosan Okinawa Electric Power Norihiko Nakamura The New Zealand Hydrogen Council (NZHC)(NZ)

IINO KAIUN Osaka Gas Yoshitsugu Kojima YOKKAICHI CITY

IMI Japan Penta-Ocean Construction

INPEX Shell Japan

Membership List of Clean Fuel Ammonia Association

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