ITOCHU Corporation concluded a Memorandum of Cooperation (MOC) concerning a collaboration in the field of green ammonia with Hive Hydrogen South Africa. ITOCHU and Hive will jointly engage in deliberation regarding the green ammonia production project in Coega, South Africa.
Hive Hydrogen South Africa is backed by UK-based Hive Energy and Built Africa. The team has been operating since September 2019. Hive Hydrogen SA is establishing five large-scale hydrogen and ammonia plants in South Africa, powered by 15 GW of renewable energy. In 2021 it announced the establishment of a $4.6-billion Green Ammonia Plant.
The plant will have a dedicated power supply at the Coega Special Economic Zone, alongside the Port of Ngqura. Based in Nelson Mandela Bay, the plant will produce 900,000 tons of green ammonia a year. Green ammonia produced in SA will be exported to world markets.
Ammonia is a hydrogen carrier that can be efficiently transported and stored at relatively low cost. The substanc is expected to reduce greenhouse gas emissions when used as a CO2-free fuel for thermal power plants, ships, etc. Unlike conventional production methods for fossil fuels such as gas and coal, green ammonia will be produced from green hydrogen, which in turn is produced from renewable energy via an electrolysis process.
ITOCHU established its contributions to the SDGs and the strengthening of its SDG initiatives as one of the Basic Policies in its Medium-term Management Plan. Under this policy, it has been strengthening initiatives for the establishment of supply chains with an eye on the stable supply of ammonia and promoting the project to manufacture and sell low-carbon ammonia in Canada, the development of ammonia-fueled ships and establishment of an international value chain for ammonia fuel for ships and the use of low-carbon ammonia for fertilizer-related applications.
Posted on 12 December 2023 in Africa, Ammonia, Hydrogen Production, Market Background | Permalink |