Stock Themes] Blue Ammonia Details and Related Stocks (U.S. & Japan Stocks)

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Introduction.

I have a great interest in many different types of investment stocks, especially energy stocks.
With keywords such as climate change, decarbonization, and carbon neutrality being frequently discussed, practical next-generation clean energy is a very popular investment theme.

To date, the renewable energy-based "green methanoland the dream technology, but it is beginning to look feasible.nuclear fusion power generation (of electricity)I have been writing an in-depth article about

This year's exhibition will focus on "blue ammonia," a more familiar material that is being realized and operationalized in a way that is compatible with solving contemporary problems.

Ammonia is normally used as a chemical in fertilizers and familiar cosmetics, but it is expected to be further exploited for energy applications.
Here I would like to take a deeper look at the investment opportunities lurking in blue ammonia.

What is blue ammonia?

What is blue ammonia?Ammonia is produced from fossil fuels and is characterized by its ability to reduce CO2 emissions into the atmosphere by using carbon capture and storage (CCS) technology to capture and store the carbon dioxide (CO2) generated in the manufacturing process.

Ammonia produced by this technology isIt is considered "CO2-free" and increasingly sustainable as an energy source.

Blue ammonia is expected to be used especially in fields where large scale energy is required, such as power generation and heavy industry,CO2 emissions can be significantly reduced by using it instead of coal in thermal power plants.
It is attracting attention as a transitional energy source toward carbon neutrality.

Further,Blue ammonia may also be used as a transport medium for hydrogen.
Ammonia is composed of hydrogen and nitrogen, and is expected to contribute to more efficient energy transportation because it can be transported over longer distances more safely than hydrogen.

It is anticipated that the evolution of blue ammonia production technology and further development of CCS technology will lead to its use in a wider range of industries in the future.

This innovation will allow us to support our energy needs in a sustainable manner while reducing the burden on the environment.

How is blue ammonia produced?

The blue ammonia production process uses fossil fuels (mainly natural gas) as a raw material to produce hydrogen, which reacts with nitrogen to produce ammonia.

The carbon dioxide (CO2) produced in this process is captured using carbon capture and storage (CCS) technology and is considered CO2-free because it is managed so that it is not released into the atmosphere.
Specifically, hydrogen is extracted from natural gas through a reforming process, and ammonia is synthesized by reacting the hydrogen with nitrogen obtained from the atmosphere using the Haber-Bosch process.

Before the ammonia produced is used for a variety of applications,The CO2 generated is captured and compressed in a dedicated facility and safely stored underground.

This technology reduces the burden on the environment while still using fossil fuelsTherefore, blue ammonia currently plays an important role alongside green ammonia, which relies solely on renewable energy.

What are the uses of blue ammonia?

Blue ammonia is used in many applications due to its CO2 emission-reducing properties.
It is expected to be used primarily in the following areas

generation (e.g. power)

Blue ammonia is being promoted for use in thermal power plants, particularlyCO2 emissions can be reduced by mixing it with coal and burning it.It is considered to be the first of its kind. This will allow energy to be generated in a more environmentally friendly manner while utilizing existing thermal power infrastructure.

Hydrogen transport medium

Ammonia is composed of hydrogen and nitrogen and can be safely transported over long distances, thus contributing to more efficient energy transportation.
Particularly,A method of safely transporting hydrogen, which is difficult to transport, in the form of ammonia and then converting it back to hydrogen at the point of use is being studied.

Chemical Industry and Fertilizers

Ammonia is one of the basic raw materials for the chemical industry and is in particularly high demand as a fertilizer.
The use of blue ammonia can also reduce the environmental impact of chemical product manufacturing processes.
These applications are important options for blue ammonia to meet current energy and industrial needs while taking into account its environmental impact.

Blue ammonia will become even more important in the future as we move toward carbon neutrality.

What is the difference between green ammonia and gray ammonia?

Blue ammonia, green ammonia, and gray ammonia each depend on the treatment of carbon emissions in the production process.

green ammonia

• Green ammonia is synthesized from hydrogen and atmospheric nitrogen obtained by electrolyzing water using renewable energy sources (solar, wind, etc.).
• No CO2 emissions in the manufacturing processTherefore, it is considered the most environmentally friendly ammonia.

blue ammonia

• CO2 generated in the manufacturing process of fossil fuels (mainly natural gas) is captured and stored using CCS (Carbon Capture and Storage) technology.
• Producing ammonia without emitting CO2 into the atmospherebut the raw materials are fossil fuels, so the energy source is not renewable.

gray ammonia

• It is also made from fossil fuels, but the CO2 generated in the manufacturing process is not captured and emitted into the atmosphere.
• Ammonia is the most commonly produced ammonia today and has the lowest cost but the greatest environmental impact.

These differences are mainly related to environmental impact and production costs.

Green ammonia is the most sustainable and environmentally friendly option, but technical challenges and high costs remain an issue.
Blue ammonia, on the other hand, is being looked at as an intermediate option, which can reduce CO2 emissions while reducing fossil fuel dependence.
Gray ammonia is the least expensive, but also has the greatest environmental impact.

How big is the market for blue ammonia? What are its prospects?

The blue ammonia market is showing very high growth rates.
In a recent study by BlueWeave Consulting, Inc,Global blue ammonia market size estimated at $75.29 million in 2023The company is doing so.

During the forecast period from 2024 to 2030,Global blue ammonia market size is projected to grow at a CAGR of 63.121 TP3T to reach $1,418.24 million by 2030The company is doing so.

The blue ammonia market is also key to meeting the growing demand for clean energy as a technology that uses fossil fuels while reducing CO2 emissions.

Regarding market size and potential,Demand for blue ammonia is increasing worldwide, and many countries are investing in the development of this new energy source.

For example, Mitsui is moving forward with a plan to invest over 100 billion yen in western Australia to produce 1 million tons of blue ammonia per year, and Aramco has started a demonstration test to transport blue ammonia from Saudi Arabia to Japan, which, if successful, will be used as ammonia for zero carbon power generation. If successful, the ammonia will be used as a zero-carbon power generation ammonia.

These moves are an important step toward a future that is less dependent on fossil fuels and the CO2 emissions reduction potential of blue ammonia.

In the future, the market for blue ammonia is expected to expand further, especially with the growing demand for this clean energy source.

What policies and regulations are in place to promote the production and use of blue ammonia?

Blue Ammonia's policies and regulations include the following initiatives

policy support

Japan aims to supply energy from hydrogen and ammonia, including fuel ammonia, by 2030 as part of its Basic Energy Plan.
This includes the development of ammonia production technology and supply systems, and policies are set to promote the transition to clean energy.

Promotion of Technology Development

The Japanese government supports the development of low-cost, efficient ammonia production technology and ammonia-based power generation technology through the Green Innovation Fund project.
As a result, the foundation for social implementation and large-scale use of ammonia is being developed.

International Collaboration

Major trading companies and corporations are establishing blue ammonia production facilities through international projects and building global supply networks.
This includes the application of CO2 Capture and Storage (CCS) technology to help achieve international environmental goals.

With these policies and regulations in place, the production and use of blue ammonia is expected to be promoted and the transition to clean energy is expected to progress.

Are there opportunities to invest in Blue Ammonia?

There are opportunities to invest in blue ammonia.
Blue ammonia is expected to play an important role, especially in the context of environmental concerns and the need to transition to sustainable energy sources.
The following are investment opportunities for the following reasons

• Growing marketsThe market for blue ammonia is growing and demand is increasing, especially due to clean energy policies in Japan and other countries. Along with government support, blue ammonia is expected to expand its role as an energy source in 2030.
• Large-scale projects:.The projects being promoted, such as Mitsui's major investment in Australia to produce 1 million tons of blue ammonia per year, demonstrate the expansion of the blue ammonia market and the confidence in its commercialization.
• Progress in Technology Development:.Developments in blue ammonia production and utilization technologies are making it more attractive for investment. Advances in efficient production technologies and CO2 capture and storage (CCS) technologies have reduced costs and environmental impact, encouraging further market expansion.

Against this backdrop, blue ammonia is attracting attention as an investment target with future growth potential, especially for projects in regions and countries with tightened environmental policies.

Investors can take advantage of these opportunities to establish positions in new energy markets.

Blue Ammonia Related Stocks (U.S. Stocks)

The following companies are closely related to Blue Ammonia.

CF Industries Holdings [CF].

CF Industries is a world leader in the production of ammonia.
The company is particularly focused on the production of green ammonia and blue ammonia.

The company's mission is to provide clean energy using ammonia, and it operates manufacturing plants in the United States and abroad.

KBR, Inc. [KBR].

KBR is an engineering and construction firm that also acts as a technology provider for Blue Ammonia.
The company has provided blue ammonia technology for commercial-scale clean ammonia production projects and is involved in large projects, particularly in the southern U.S. Gulf Coast.

Enbridge [ENB

Enbridge (ENB)plays a notable role in the production of blue ammonia.
The company is working with Yara Clean Ammonia, a subsidiary of Yara International ASA, on plans to build a low-carbon blue ammonia production facility in Texas.

The facility has the capacity to produce up to 2.8 million metric tons of ammonia per year and is expected to be operational in 2028.

The project aims to achieve low-carbon production of ammonia by combining automated thermal reforming and carbon capture technologies, and leverages Enbridge's experience in large-scale infrastructure development and Yara's expertise in ammonia production and operation to provide a sustainable energy solution The goal of the project is to provide a
Therefore, Enbridge is a very promising blue ammonia-related stock.

ExxonMobil [XOM

ExxonMobil is producing blue ammonia through a partnership with CF Industries. This cooperation is related to the production of blue ammonia to reduce difficult carbon emissions .

Companies related to blue ammonia in Japan

Toyo Engineering [6330].

TOYO is working on a project to produce ammonia from natural gas containing hydrocarbons in a plant, utilizing technology that reduces carbon dioxide emissions generated in the production process.
Plans are also underway to inject the CO2 generated into oil fields owned by Irkutsk Oil Company (IOC) to restore hydraulic reservoirs and increase production.

In addition, the company has signed an alliance agreement with JGC Holdings for the EPC business of an ammonia production plant and ammonia receiving terminal, and is promoting the fuel ammonia business.
This partnership indicates that the company is developing technologies for the social implementation of fuel ammonia, which is expected to contribute to the realization of a decarbonized society.

Stock Price (6330) Chart (Yahoo! JAPAN Finance)

ITOCHU Corporation [8001

ITOCHU Corporation is involved in the supply of clean energy, including blue ammonia, in the global energy supply chain. Projects related to the production and supply of blue ammonia are underway.

View Stock Price (8001) Chart (Yahoo! JAPAN Finance)

Mitsubishi Corporation [8058

MC is actively involved in energy projects involving blue ammonia both domestically and internationally, with the goal of energy conversion and carbon reduction.

Stock Price (6330) Chart (Yahoo! JAPAN Finance)

Sumitomo Corporation [8053

Sumitomo Corporation is involved in the research and development of blue ammonia as a clean energy initiative. This includes international joint development projects.

Stock Price (8053) Chart (Yahoo! JAPAN Finance)

Sumitomo Chemical [4005

Sumitomo Chemical, together with Yara International of Norway, has initiated studies on the promotion of the use of clean ammonia.
To focus on the production of blue ammonia with virtually zero CO2 emissions by using technologies (including CCS) to effectively manage the CO2 emitted when ammonia is produced from fossil fuels, to promote the use of ammonia as a clean energy source, and to contribute to the achievement of carbon neutrality The company is aiming to achieve carbon neutrality.

Stock Price (4005) Chart (Yahoo! JAPAN Finance)

IHI [7013].

IHI is working to establish a supply network for blue and green ammonia. This is in recognition of the need to secure sufficient and affordable ammonia as a fuel in order to make the entire supply chain carbon neutral and quickly achieve a zero carbon, circular economy.

IHI is also using its ammonia storage and combustion technologies to study ammonia import/export facilities and ammonia combustion demonstrations. In this way, the two companies are leveraging their strengths to quickly establish an advanced global ammonia supply chain with the aim of realizing a carbon neutral society.

Stock Price (7013) Chart (Yahoo! JAPAN Finance)

JGC Holdings [1963] (Japan)

JGC Holdings is involved in the development of blue ammonia production technology in INPEX Corporation's Kashiwazaki Clean Hydrogen/Ammonia Project.
This project has been approved as a subsidized project by the New Energy and Industrial Technology Development Organization (NEDO) and focuses on the development of hydrogen utilization and production technologies.

The project includes technology to produce hydrogen from renewable energy sources and convert that hydrogen to ammonia, with the goal of using energy cleanly while reducing CO2 emissions. Through this technology, JGC Holdings aims to provide a sustainable energy solution with minimal environmental impact.

Stock Price (1963) Chart (Yahoo! JAPAN Finance)

What are some of the issues and concerns regarding blue ammonia?

Blue Ammonia issues and concerns include

• High cost:Blue ammonia production incurs high costs, especially related to the use of carbon capture and storage (CCS) technology. This can reduce overall economics.
• Technical issues:There are many technical challenges to efficient CO2 capture and long-term storage; safe treatment and storage of CO2 must be ensured.
• Infrastructure development:ブルーアンモニアの広範な利用には適切な供給インフラの構築が求められる。これには大規模な投資と計画が必要。
• 環境影響：化石燃料に依存しているため、完全なカーボンニュートラルへの移行には限界があるとの懸念がある。

これらの課題に対処するためには、技術の革新、コスト削減、規制の強化が鍵となる。

summary

ブルーアンモニアの投資テーマとしての魅力、メリット、デメリットを含め、その仕組みや取り組みの現状を深く掘り下げて調査しました。

当初は米国株を中心に銘柄選択を行っていましたが、エネルギー分野における日本企業の活発な取り組みや、プロジェクトの大幅な進展も明らかになりました。

アンモニアを使用した発電は、CO2を排出しないという魅力だけでなく、既存の火力発電のインフラを利用して運搬や発電が行えるため、現実的かつ魅力的な代替エネルギー源と言えます。

個人的には、エンブリッジ（ENB）の高配当が魅力的でポートフォリオに加えていましたが、ブルーアンモニアプロジェクトの今後の展開を踏まえ、さらなる株の買い増しを検討しています。

The Future of Dividend King "Enbridge (ENB)" and Future Stock Outlook

Dividend King Enbridge (ENB) delves into the company's business, financials, and growth strategy, as well as its expansion into the ammonia market and its efforts in renewable energy. We look at Enbridge's future development and prospects.

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