The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed today a loan agreement amounting to up to USD12 million (JBIC portion) with MITSUI & CO., LTD. (MITSUI) for ammonia production and sales business to be conducted through Ammonia Project Company RSC LTD (APC), its subsidiary in the United Arab Emirates (UAE). The loan is co-financed with Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to approximately USD27 million.
The loan is intended to provide the funds necessary for MITSUI to invest in APC for the ammonia production and sales business in the UAE.
MITSUI will offtake part of the ammonia produced in the operations and use it as a fuel source and a raw material for chemical and fertilizer production in Japan. Hydrogen and its derivatives, including ammonia, are regarded as key energy sources to achieve carbon neutrality, as they do not emit CO2 when burned. The loan, which supports the overseas business of MITSUI, will contribute toward establishing a supply chain of hydrogen and its derivatives and securing a long-term, stable supply of ammonia, which is an important energy resource for Japan, in preparation for a decarbonized society.
With the Basic Hydrogen Strategy, which was formulated in December 2017 and updated in June 2023, the government of Japan aims to develop large-scale resilient supply chains for hydrogen and its derivatives, by mobilizing significant funds through the supports of policy-based financial institutions, including JBIC. In addition, the Sixth Energy Basic Plan, which was approved by the Cabinet in October 2021, assumes that about 1% of the energy mix will be covered by hydrogen and ammonia in FY2030. The loan is in line with this energy policy of the government of Japan.
JBIC will continue to financially support the overseas business expansion of Japanese companies, thereby contributing toward securing stable energy resource supplies and addressing energy transformation for the realization of a decarbonized society.
