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.