Japanese car manufacturer, Mazda Motor Corporation, announced not to change the current in-house coal-fired power unit at its Hiroshima factory into an ammonia mono-firing (this project was announced in August, 2024). It attempts to change it into a gas cogeneration through LNG instead in the future.

Achieving reduction targets is difficult with ammonia-only combustion.

According to Mazda’s announcement, the company has revised its previous plan of converting its in-house coal-fired power unit to ammonia mono-firing. Mazda cited the need to “ In anticipation of future alternative fuel procurement environments and technological advancements.” This seems to reflect the judgment that securing ammonia fuel and ensuring its profitability would be challenging.

As we, JBC, repeatedly pointed out, ammonia cannot be considered “zero-emission” fuel as long as using “blue ammonia” derived from natural gas, as CO₂ is emitted during its production process. Furthermore, the problem of methane leakage associated with gas extraction remains. In fact, concerns were raised at the municipal review committee that “using ammonia as fuel might be considered greenwashing.” The decision to revise the plan that had been moving forward despite these technical challenges and environmental concerns is a reasonable judgment. However, the problem lies in the fact that the company has stepped back from the 2030 reduction targets.

The next challenge is phasing out coal-fired power plant and shift to renewable energy

There are other operating aged coal-fired power plants at Mazda’s main factory. The company has updated the “Roadmap for Achieving Carbon Neutrality by 2030” that indicated shutting down coal-fired unit by 2030 and switching to external procurement for the majority of its required electricity. After closing the coal-fired power unit at its main factory, the company is planning to promote decarbonization by switching to a gas cogeneration system fueled by city gas produced and to hydrogen in the future. Once a gas-fired power unit starts its operation, switching fuel to hydrogen is not easy. Carbon neutrality cannot be achieved unless the hydrogen used is limited to green hydrogen, rather than gray or blue hydrogen derived from fossil fuels, which carries environmental burdens in its production process.

Mazda is aiming to achieve carbon neutrality at its global manufacturing facilities by 2035, and has revised its interim CO2 emissions reduction target for FY2030 from 69% compared to FY2013 to 46% or more. , equivalent to Japan’s target, to steadily transition toward achieving carbon neutrality. This must be a retreat in efforts toward decarbonization. The next critical task is to ensure the coal phase-out and promote a transition to truly sustainable renewable energy for the health of citizens and the future of the planet. The company has stated its commitment to achieving carbon neutrality across its entire supply chain by 2050 through three key pillars: energy-saving initiatives, adoption of renewable energy, and usage of CN fuels. We expect a transition away from fossil fuels and a shift toward renewable energy as soon as possible.

【Company release】 Mazda Updates Roadmap for Achieving Carbon Neutrality

＊Image created using Microsoft Coplit