Feasibility study project for establishment of ammonia supply base in Sakai-Senboku area of Osaka selected for fiscal 2024 Subsidy for Measures to Promote Introduction of Non-Fossil Energy (Hydrogen Supply Infrastructure Development Project)

Mitsui & Co., Ltd. (Head Office: Tokyo, President and CEO: Kenichi Hori), Mitsui Chemicals, Inc. (Head Office: Tokyo, President & CEO: Osamu Hashimoto), and IHI Corporation (Head Office: Tokyo, CEO: Hiroshi Ide) (hereinafter and collectively, the "three companies"), hereby announce that their “feasibility study project for the establishment of an ammonia supply base in the Sakai-Senboku area of Osaka” (the “project”) has been selected for the fiscal 2024 “Subsidy for Measures to Promote the Introduction of Non-fossil Energy (Hydrogen Supply Infrastructure Development Project)” offered by the Consortium for Resilient Omni-energy Supply System (CROS; https://cros2.jp/).

The public call for subsidy applications was conducted with the aim of promoting the creation of large-scale demand for the use of hydrogen and other resources and establishing a supply chain that enables economical, efficient, and self-sustained development. The program subsidizes a portion of the cost of a feasibility study to help businesses organize and analyze the information necessary to determine the feasibility of establishing hydrogen and other resources supply infrastructure, and also provides running support for the feasibility study.

The three companies applied for the subsidy for the project as part of their joint study on the establishment of a hydrogen and ammonia supply chain based in the Osaka coastal industrial zone, announced

in August last year (Launch of joint study on establishment of hydrogen and ammonia supply chain based in the Osaka coastal industrial zone | News release | MITSUI CHEMICALS, INC.), and following a screening process, the project was selected for the subsidy on May 30. Going forward, the project will involve organizing and analyzing the information necessary to determine the feasibility of establishing supply bases (capable of importing and receiving, storing, and shipping ammonia) that will contribute to the expansion of the large-scale utilization of ammonia, with the aim of starting supply by FY2030.

Through the project, the three companies aim to establish an ammonia supply base business in the Sakai- Senboku area of Osaka, and build an ammonia supply chain spanning extensive demand areas including the Kansai and Setouchi regions, thereby realizing a business that contributes to the decarbonization of the Kansai and Setouchi wide economic zone.