Large-Scale Low-Carbon Ammonia Supply Chain Plan Certified under Japan’s “Support Focusing on the Price Gap” Scheme

Jun. 30, 2026

IHI Corporation
Kobe Steel, Ltd.
Sumitomo Chemical Co., Ltd.
Nippon Beet Sugar Manufacturing Co., Ltd.
Hokkaido Electric Power Co., Inc.
Mitsubishi Gas Chemical Company, Inc.
UBE Corporation

IHI Corporation, together with Kobelco Power Kobe, Inc. (a wholly owned subsidiary of Kobe Steel, Ltd.), Sumitomo Chemical Co., Ltd., Nippon Beet Sugar Manufacturing Co., Ltd., Hokkaido Electric Power Co., Inc., Mitsubishi Gas Chemical Company, Inc., and UBE Corporation (collectively, the “seven companies”), today announced that their plan to utilize low-carbon ammonia produced in India has been certified under the “Support Focusing on the Price Gap” scheme^*1, in accordance with the Hydrogen Society Promotion Act, by the Minister of Economy, Trade and Industry and the Minister of Land, Infrastructure, Transport and Tourism.

In this supply chain development, IHI will offtake the ammonia produced by a low-carbon ammonia manufacturing project being jointly developed with ACME Group^*2 in Odisha, located in eastern India, and supply it to the seven companies in Japan. The seven companies will use the ammonia as fuel for power generation and as feedstock for chemical and other industrial applications, thereby contributing to the reduction of environmental impact.

The certification marks an important milestone in the development of Japan’s ammonia value chain from fiscal 2030 onward. The seven companies will work to steadily advance and expand the utilization of low-carbon ammonia, aiming to contribute to the realization of a carbon-neutral society.

As a user company under the plan , Kobelco Power Kobe, Inc. intends to utilize ammonia produced in India for ammonia co-firing at the Kobe Power Plant. Building momentum from this certification, the company will further advance its initiatives toward ammonia co-firing, including commencing full-scale construction of a 20% ammonia co-firing facility, as outlined in the roadmap to carbon neutrality by 2050.

In addition, this certification marks a major step forward in Kobe Steel (Kobelco) Group’s green transformation (GX)—a key component of KOBELCO-X^*3, which encompasses a range of transformation initiatives to achieve its business strategy.

The Kobelco Group is also advancing initiatives to transform into an appealing company to all stakeholders by providing solutions to the needs of society through the integration of diverse technologies, products, and services. Aligned with the national energy policy, the Group is working to enhance the efficiency of thermal power generation facilities, ensuring a stable and cost-effective electricity supply. Through its commitment to greater efficiency and reduced carbon emissions in thermal power generation, the Group strives to realize carbon neutrality by 2050, with its vision to create a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure, and prosperous lives.

1. *1The “Support Focusing on the Price Gap” scheme under the Hydrogen Society Promotion Act is designed to promote the establishment of supply chains for low-carbon hydrogen and its derivatives, including low-carbon ammonia, by supporting the price differential between low-carbon hydrogen and related products and conventional fuels and feedstocks. Certified project suppliers may receive support from the Japan Organization for Metals and Energy Security (JOGMEC) .
2. *2 The ACME Group is one of India’s leading renewable energy companies and is engaged in the production of low-carbon ammonia and green hydrogen using renewable energy (Website: https://www.acme.in ).
3. *3KOBELCO-X is a collective term of the Kobelco Group’s seven transformation initiatives aimed at achieving the transformation into an appealing company.
   KOBELCO-X reference material: Our Group’s Transformation Initiatives[PDF:5.08MB]