The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on June 30 a loan agreement amounting to up to approximately USD 626 million (JBIC portion) with Mitsui & Co., Ltd. (MITSUI). The loan is co-financed with Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to approximately USD 1,044 million.
The loan is intended to provide the funds necessary for MITSUI to invest in Blue Point Number One, LLC (Blue Point), a U.S. company through which MITSUI will produce and sell low-carbon ammonia in Louisiana.
In the Basic Hydrogen Strategy, the Seventh Strategic Energy Plan, and the GX2040 Vision, announced by the government of 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. Additionally, the Basic Hydrogen Strategy aims to develop large-scale resilient supply chains for hydrogen and its derivatives, by mobilizing significant funds through support from policy-based financial institutions, including JBIC.
The loan, which supports MITSUI’s overseas project, will contribute to building a supply chain of hydrogen and its derivatives for a decarbonized society. The loan aims to support the Japanese company’s investment in an early-stage market, in alignment with the policies of the Japanese government, which promote broader efforts by the supply and utilization of hydrogen and its derivatives by private companies. Under this project, more than 95% of CO2 emissions generated during the production process will be reduced by utilizing carbon dioxide capture and storage (CCS) technology. MITSUI will offtake a portion of the low-carbon ammonia produced from this project and supply it to sectors such as electricity and chemicals. Accordingly, the loan will support the decarbonization efforts of these industries.
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.
