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MOL invests in planned Louisiana-based hydrogen-ammonia production facility

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Subsidiary MOL Clean Energy and Clean Hydrogen Works have become JV shareholder in ACE; facility is expected to produce hydrogen-ammonia to decarbonise sectors including bunker fuel.
MOL

MOL Clean Energy, US, LLC (MCE), a 100% subsidiary of Mitsui O.S.K. Lines, Ltd. (MOL), and Clean Hydrogen Works, LLC (CHW) on Wednesday (14 June) announced MCE as a Joint Venture shareholder in Ascension Clean Energy (ACE), a proposed world-scale, clean hydrogen-ammonia production and export facility in Ascension Parish, Louisiana. 

Expected to produce 7.2 million metric tons of clean hydrogen-ammonia annually, ACE will help meet the rapidly emerging demand for affordable, secure, and low-carbon fuels and feedstock around the world. This clean energy will help decarbonize hard-to-abate sectors including power generation, bunker fuel, heavy transportation, steel processing and industrial applications.

Other shareholders are CHW, Denbury Carbon Solutions., a world-leading carbon solutions provider with more than two decades of successfully managing carbon dioxide (CO2), and Hafnia, one of the world’s leading oil product tanker owners and operators.

“Clean hydrogen-ammonia is critical to decarbonising the global energy market,” said Tomoaki Ichida, CEO, MCE, “With this innovative project, MOL is investing not only for our future growth, but also helping promote the development and adoption of clean hydrogen-ammonia within our fleet and customer base,” Ichida added.

As one of the world’s largest shipping companies, MOL is well-positioned to help develop safe, sustainable, and efficient solutions to ship ACE’s clean hydrogen-ammonia to emerging clean energy markets across the globe.

With a projected investment of USD 7.5 billion, ACE is expected to generate approximately 1,500 construction jobs over five years and 350 permanent, full-time jobs with an annual average wage of more than USD 116,000, once fully operational. 

“With the rapidly evolving macro-environment, the world’s net zero goals must be increasingly coupled with affordability and security of energy supply,” said Mitch Silver, CHW Senior Vice President and Chief Operating Officer.

“MOL’s practical yet visionary approach to decarbonization will add critical capabilities and insights to support ACE in delivering on its mission to provide customers with affordable and large-scale clean energy solutions.”

 

Photo credit: Mitsui O.S.K. Lines, Ltd.
Published: 20 June, 2023

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