September 5, 2024
Manies Group Co., Ltd.

Investment in the world’s first commercial-scale SOEC-based
green ammonia development company
~The challenge of establishing a green ammonia supply chain~

Manies Group Co., Ltd. (hereinafter “the Company”), Mercuria Holdings Co., Ltd. (hereinafter “Mercuria”) and T.N. Plan Co., Ltd., have invested in First Ammonia, Inc. (hereinafter “FA”), U.S.-based green ammonia development company, that aims to commercialize green ammonia business globally. In addition, the Company and Mercuria has reached an agreement with FA to collaborate on FA’s project development and finding off-takers (buyers) in Asia.

As for ammonia, the Japanese government’s “The Basic Policy for the Realization of GX” also calls for the establishment of a large and robust supply chain, both domestically and internationally.

Ammonia has been mostly produced from fossil fuels such as natural gas, petroleum, and coal, and has been used mainly for fertilizer. However, technological developments are increasing expectations for its future use as a zero-emission fuel that does not emit CO2 even when burned, i.e. fuel ammonia, for direct use in thermal power generation, industrial furnaces, ships, etc., and as a hydrogen carrier.

Green ammonia can be produced using renewable energy in the production process without emitting CO2, and there are few examples of large-scale commercial plants at this time.

FA is planning to commercialize the world’s first large-scale green ammonia production plant, utilizing SOEC (Solid Oxide Electrolysis Cell), a next-generation water electrolysis system, which was developed by Topsoe in Denmark. A highly efficient plant that will use Topsoe’s SOEC integrated with an ammonia loop can keep power consumption lowest and can fluctuate production volume to match the availability of supplied electricity, contributing to grid stability.

FA has signed a long-term preferred SOEC supply agreement with Topsoe for 5 GW in terms of power consumption* and aims to develop 20 projects in the US, South America, Southeast Asia, and Europe by 2030. The first plant is planned in Port of Victoria, Texas, U.S. (300 MW in terms of power consumption), under the long-term supply contract with Uniper, a German energy company, targeting construction to start in 2025 and commercial operation to commence in 2026.
*CO2 emission reductions of 180,000 to 240,000 tons per year per 100 MW, and ammonia production of 100,000 tons per year per 100 MW

Through this investment, the Company expects to contribute to our investment income. By promoting business expansion such as project development and finding off-takers in Asia in collaboration with FA, the Company will contribute to building a green ammonia supply chain centered on Japan and Asia, and create opportunities for Japanese and Asian companies to participate in the ammonia business.

About FA

Image of a 300MW plant in Victoria, Texas (Source: FA)

Comments from Representatives of Each Company
＜Comments from Joel H. Moser, CEO, First Ammonia, Inc.＞
We are excited to welcome Mercuria Holdings, Manies Group, and T.N. Plan to the First Ammonia team as we work together with our partners to decarbonize heavy industry, transport fuels, and power generation. Mercuria and Manies Group each bring incredible networks and expertise. They will be pivotal as we build green plants from Texas to Southeast Asia, and around the world.

＜Comments from Hirotsugu Fujii, CEO, Manies＞
We feel it is our mission to be able to develop this project as a partner making strategic preparations from the management side, especially for expansion in Asia, in which major players with high credibility from the United States and Europe are participating. While making the most of our company’s edge as an innovator, we will collaborate with off-takers mainly in Japan and promote transportation and related infrastructure development projects in the future, contributing to increasing Japan’s presence in the green ammonia business.

＜Comments from Toshihiro Toyoshima, CEO, Mercuria Holdings＞
As Japan aims to achieve carbon zero by 2050, green ammonia will be important in decarbonization projects, and the best place for it is outside Japan. Through this investment, we will not be limited to the business in the private sector but will have the potential to build a medium to long-term, epic-scale platform business (green ammonia supply chain) by collaborating between the public and private sectors and involving strategic partners in Asia. With this investment, we hope to contribute to building a green ammonia supply chain through our main business of fund management.

＜Comments from Sadatoshi Yamamoto, CEO, TN Plan＞
Our company’s primary focus is on renewable energy generation, particularly the practical application of decarbonized energy, such as small-scale distributed hydrogen production systems and e-fuel power generation systems. We believe our small and medium-sized business profile, which allows us to respond swiftly, could be a valuable asset in this green ammonia project.

About MANIES

 About Mercuria

About TN Plan

*For inquiries regarding this release, please contact
MANIES GROUP Co., Ltd.
Website: https://en.manies-ai.com/contact
Mail: manies@manies-ai.com
Tel: 03-6206-3309