Japan’s New Energy and Industrial Development Organisation (NEDO) has approved the initiative, which is expected to run through to 2027.

MHI will handle the front-end engineering and design (FEED) and technical design for the demonstration plant, which will convert ammonia back into hydrogen near end-use sites.

Plant rendering © MHI

Meanwhile, Nippon Shokubai will lead catalyst R&D, developing and supplying a low-temperature, non-noble-metal catalyst designed to enhance efficiency and durability in ammonia cracking.

Alongside NEDO, Hokkaido Electric Power (Hepco) is also set to support the project, potentially as a future user of the technology in its regional decarbonisation strategy.

The Japanese electric utility is aiming to achieve carbon neutrality by 2050 across the entire energy sector.

With high energy density, liquid storage, and use of existing infrastructure, ammonia is appealing to hard-to-abate industries such as maritime, though it must be cracked into hydrogen before use in applications like fuel cells.

According to the Global Maritime Forum, ammonia is nearing proof of concept, with pilot vessels, engine tests, and bunkering trials already in progress.