PERTH (miningweekly.com) – The energy subsidiary of iron-ore miner Fortescue, Fortescue Future Industries (FFI), has inked a memorandum of understanding (MoU) with Japanese major IHI Corporation and its Australian arm IHI Engineering Australia to investigate the potential of establishing green ammonia supply chains between Australia and Japan.

The parties will jointly assess the economic and technical feasibility of supplying green ammonia produced in Bell Bay, in Tasmania, and transported to Japan for blending into existing power generation.

Work under this MoU is an important part of FFI’s feasibility and development programme for the 250 MW green hydrogen and ammonia Bell Bay project, FFI said in a statement.

FFI CEO Julie Shuttleworth said that the world’s transition to a clean energy future represents a major growth opportunity and this MoU with IHI and IEA will help position FFI, IHI and IEA at the forefront of the global green industry.

“Japan is a priority market for green ammonia exports. By leveraging our value chain and market access as well as the skills and capability of our people to rapidly develop complex projects, FFI is well placed to meet the future demand of green ammonia.”

“Australia, with an abundance of renewable energy, is a very promising location for large scale ammonia production,” said IHI president and CEO Hiroshi Ide.

“IHI will contribute to realizing a carbon-free society by merging our ammonia combustion and production technology together with green ammonia.”

The MoU between FFI and IHI comes shortly after ASX-listed Woodside inked a heads of agreement with IHI and Marubeni Corporation to also investigate the production and export of green ammonia produced from renewable hydro power in Tasmania.

Woodside said in a statement earlier this week that the green ammonia would be produced at a small-scale hydrogen electrolysis plant, with Woodside exploring options for production in the Bell Bay region, in north-east Tasmania.

The capacity of the proposed plant could eventually be scaled-up to as much as 250 MW to produce green hydrogen as feedstock for green ammonia exports.