Japan Pushes Ammonia Co-Firing Technology in South Africa With Proposed Yen Loan

Japan plans to fast-track talks with South Africa on a yen-denominated energy loan while promoting its ammonia co-firing technology to reduce carbon emissions in a country that still generates most of its electricity from coal. The loan would be used by South Africa to extend its own energy transition aims, Japanese diplomatic officials said during a visit by Foreign Minister Toshimitsu Motegi.

The size of the loan was not specified.

Japan Times reported that the offer adds to about $10 billion in climate finance already pledged to South Africa by European nations in a formal pact. The loan was first mooted in a meeting between South African President Cyril Ramaphosa and former Prime Minister Shigeru Ishiba in Yokohama in August at an Africa-focused summit.

That encounter set the stage for the current push by Japanese officials to accelerate negotiations.

Japan has been promoting a technology known as ammonia co-firing, in which a portion of the coal used at power plants is replaced with ammonia. South Africa produces about three-quarters of its electricity from coal, making the technology a potential bridge for the country even as it possesses some of the world’s best solar power and green hydrogen production potential.

In ammonia co-firing, renewable energy can be used to split water and produce so-called green hydrogen.

The clean-burning fuel is then combined with nitrogen to produce ammonia, which is easier to transport than hydrogen. Japan Times reported that the approach has attracted criticism for potentially prolonging the life of coal-fired plants. Countries such as Germany and Japan are seeking to boost the presence of their companies in South Africa.