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Nitrogen+Syngas 398 Nov-Dec 2025

21 November 2025

METI funds hydrogen for steel and ammonia production

METI funds hydrogen for steel and ammonia production

As part of the Japanese government’s Green Transformation scheme, two hydrogen producers have been selected to receive subsidies for low-carbon production projects. Out of the overall $1 trillion GX scheme, $51 billion is earmarked for hydrogen and ammonia investments, with the bulk going towards a long-term programme that subsidises the increased production costs. The first two recipients are a Toyota Tshuho-led consortium (electrolytic hydrogen for steel), and Resonac (hydrogen from used plastics for ammonia). In the programme, production projects are required to have the support of a major hydrogen consumer – in Resonac’s case, this is Japanese chemicals giant Nippon Shokubai, who will offtake the ammonia produced from lower-carbon hydrogen.

Operational since 2003, Resonac’s Kawasaki Plastic Recycling (KPR) plant gasifies used plastics and other materials at high temperatures, breaking them down to produce (amongst others) hydrogen and carbon dioxide. The hydrogen is then mainly used as feedstock for ammonia production within Resonac, which is then used in synthetic fibres, resins, chemical fertilizers, and as denitrification agents for thermal power plants. In 2023, Resonac obtained ISCC PLUS certification for three products – hydrogen, ammonia, and acrylonitrile – partially derived from used plastics at Kawasaki.

On the back of the awarded subsidies, Resonance has now made the decision to produce ammonia in Kawasaki only using hydrogen from used plastics (hydrogen is also currently produced from city gas onsite). This will be achieved by developing and introducing new processes based on existing operations at KPR. In 2024, Resonac also began demonstration experiments using not only used plastics, but used textiles as feedstock. The new facilities for hydrogen production are scheduled to begin operation in April 2030.

Latest in Asia

Coromandel starts trial operations at new acid plants

Coromandel International says that it has started trial production at its new sulphuric acid and phosphoric acid plants in Kakinada, Andhra Pradesh. The company says that this marks a crucial step towards transforming the unit into a fully integrated facility, significantly enhancing production capacity and diminishing reliance on imported raw materials for fertiliser manufacturing. The company is now focusing on a phased ramp-up. The new plants have of 2,000 t/d of sulphuric acid and 650 t/d of phosphoric acid, respectively. The integration of these acid plants is strategic, aligning with Coromandel's objective to strengthen backward integration in its fertiliser manufacturing value chain. By producing key intermediates in-house, the company aims to secure stable supplies, enhance cost efficiencies, and achieve greater self-sufficiency, thereby reducing dependence on imported raw materials. The project aims to replace over 50% of the Kakinada plant's imported acid requirements and mirror the integration levels seen at its Vizag and Ennore facilities.

Indonesian nickel shutdown to cut sulphur/acid demand

Four Chinese-operated nickel plants at the Indonesian Morowali Industrial Park have temporarily ceased operations following a fatal landslide in February, in a development that will significantly reduce regional demand for sulphur and sulphuric acid. The shutdowns affect facilities run by China’s GEM Co. and its partners, which together account for 30% of Indonesia’s high-pressure acid leaching (HPAL) capacity. The move comes amid heightened regulatory scrutiny. The largest of the four plants, PT QMB New Energy Materials, could remain offline for up to three months.

NCOC seeks arbitration over sulphur fine

The North Caspian Operating Company (NCOC), which operates the huge Kashagan oil field in Kazakhstan, has said that it is seeking international arbitration to resolve its ongoing dispute with the government of Kazakhstan. Kazakhstan has imposed a swingeing $4.6 billion fine for alleged violations of sulphur storage regulations at the NCOC site. In December, a special administrative court in Astana turned down an appeal by NCOC, although it also granted leave to appeal in a higher court. NCOC, a partnership between Shell, Eni, TotalEnergies, ExxonMobil, China National Petroleum Corporation, Inpex and Kazakh state oil and gas company KazMunayGaz, continues to maintain that its sulphur handling operations have been conducted in compliance with Kazakhstan’s laws and that it had the required permits in place.