Japan’s IHI says to work on converting LNG terminals to ammonia facilities

Japan’s IHI is looking into converting liquefied natural gas (LNG) receiving and storage terminals near gas-fired power plants into ammonia-based facilities.

The company said in a statement on Wednesday it would draw on its corrosion expertise and experimental technologies for materials to study the feasibility of “minimally modifying these terminals during the second half of this decade.”

IHI noted that interest is increasing in ammonia as a “carbon-neutral alternative to coal- and gas-fired power plants because its combustion emissions are free of carbon dioxide.”

The company is thus developing technology to use ammonia to fuel boilers and gas turbines.

“Deploying carbon-neutral fuels entails constructing receiving and storage terminals. Converting LNG facilities should drive ammonia uptake by slashing costs and ensuring effective land usage,” IHI said.

IHI, which is one of Japan’s largest builders of LNG receiving and storage terminals, revealed plans back in 2021 to develop a large ammonia receiving terminal.

Japan’s shipping giant NYK and its partners Nihon Shipyard and IHI recently also secured an approval in principle from ClassNK for their ammonia floating storage and regasification barge (A-FSRB).

In addition, IHI is working with Japan’s LNG trading giant and power firm, Jera, to supply larger volumes of ammonia to the latter’s coal-fueled Hekinan thermal power station.

Most recently, IHI joined forces with GE to develop ammonia combustion technologies for heavy duty gas turbines.

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