This report examines the financial viability of Japan’s flagship ammonia co-firing strategy, revealing significant economic challenges that threaten its long-term sustainability.
According to our findings, the production costs of ammonia and coal plants are twice the potential revenue, while current government subsidies of JPY 3 trillion (USD 20 billion) fall far short of the actual funding required. An estimated USD 200 billion or more may be needed to achieve just a 50% reduction in coal use.
The report calls for an urgent reassessment of Japan’s ammonia pathway and offers data-driven insights to support more cost-effective and climate-resilient alternatives.