In a major development in the clean energy sector, Saudi Arabia has successfully shipped its first-ever independently-certified low-carbon ammonia to Japan. The move marks a significant milestone in the low-carbon ammonia value chain and showcases the successful collaboration between various parties in the sector. The ammonia, produced by SABIC Agri-Nutrients using feedstock from Aramco, was sold to Fuji Oil Company by Aramco Trading Company. Mitsui OSK Lines (MOL), a leading Japanese shipping company, was responsible for the safe transportation of the low-carbon ammonia to Japan, with technical support from Japan Oil Engineering.
The ammonia is considered low-carbon as CO2 from the manufacturing process was captured and utilized downstream. This technology, known as carbon capture and utilization (CCU), helps to reduce the carbon footprint of the ammonia production process, making it an attractive option for countries looking to transition to clean energy. Japan has already announced plans to increasingly harness ammonia as a fuel for power generation and ship propulsion as part of its 2050 decarbonization goals.
The successful delivery of the low-carbon ammonia is expected to have significant implications for the future of the clean energy sector, as more countries look to transition to renewable energy sources. MOL's executive vice president, Toshiaki Tanaka, highlighted the importance of ammonia as a next-generation clean energy source, stating that it is expected to be in high demand in the coming years.
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