The aim of Tsubame BHB Co., Ltd. (Head Office: Chuo-ku, Tokyo; CEO: Masahiro Watanabe; hereinafter, “the Company”) is to commercialize on-site ammonia production at small-scale plants using an electride-based catalyst. We have raised a total of approximately 4 billion yen through CE share warrants with Ajinomoto Co., Ltd., UMI I Investment Limited Partnership, UMI Ⅱ Investment Limited Partnership, Nippon Yusen Kabushiki Kaisha, Mirai Souzou No. 2 Investment Limited Partnership, Idemitsu Kosan Co., Ltd., INPEX CORPORATION, Sankyu Inc., Nishinippon Plant Engineering and Construction, Co., Ltd., Development Bank of Japan Inc., Sumitomo Mitsui Trust Bank, Limited, and i-nest No. 1 Investment Limited Partnership as subscribers.

Background of Fund Raising

The Company has developed a compact ammonia production equipment using an electride catalyst that is capable of highly-efficient synthesis of ammonia under low-temperature and low-pressure conditions. This electride-based catalyst was discovered and invented by a research group led by Honorary Professor Hideo Hosono of Tokyo Institute of Technology. Based on verification tests that have been carried out at a pilot plant since October 2019, we will begin full-scale sales of compact ammonia production equipment. The Company has also participated in the catalyst development team as part of NEDO’s Green Innovation Fund “Fuel Ammonia Supply Chain Establishment Project,” where we are responsible for the development of electride-based catalysts using non-precious metals. We are working on the social implementation of commercial equipment while at the same time developing new technologies.

Using the funds raised this time, we will continue to promote our business by making compact ammonia production equipment that enables local production for local consumption more widespread, developing new catalysts and new processes, and further accelerating efforts toward resolving the food crisis while working to realize a carbon-free society.

Main Use of Funds from the Capital Increase

• Expanding the introduction of technologies on-site
• Establishment of new processes
• R&D for mass production of next-generation catalysts
• R&D aimed at improving process efficiency and productivity
• Recruitment of human resources

Comments from New Investors

Executive Officer Junzo Yamamoto of Idemitsu Kosan Co., Ltd.
Our company will focus on ammonia, which is a next-generation fuel that does not emit CO2 when burned, in order to realize a carbon-neutral society. Not only will we utilize it at our own offices, we will consider initiatives for building an ammonia supply chain with partner companies. We will use this investment to strengthen cooperation with Tsubame BHB Co., Ltd. as a company with innovative ammonia synthesis technology, and work toward spreading clean energy.

Executive Officer Shoichi Kaganoi, Vice President of Hydrogen & CCUS Development, GM of Technology Development & Coordination Unit at INPEX CORPORATION
The new ammonia synthesis technology that is being developed by Tsubame BHB makes it possible to synthesize ammonia at lower temperatures and lower pressures than with conventional technologies, which will help reduce power consumption and improve safety. Clean ammonia production is also expected to contribute to decarbonization.
We will support the commercialization of small-scale on-site ammonia production by Tsubame BHB together with efforts to realize large-scale, low-cost production in the future. We will work as a partner with Tsubame BHB in order to provide clean energy.

Executive Managing Officer Toshio Yuki of Sankyu Inc.
As a next-generation fuel that does not emit carbon dioxide, ammonia is expected to help decarbonization of electric power. We decided to subscribe to share acquisition rights issued by Tsubame BHB, whose solutions and business models are based on innovative catalyst technology, believing that our business such as logistics, plant engineering and operating support will contribute to realize a carbon-free society through combination of Tsubame BHB’s business. We will help to make on-site ammonia production equipment more available in Japan and other countries, and actively work to reduce the environmental load.

President Yuzo Sasaki of Nishinippon Plant Engineering and Construction Co., Ltd.
In the electric power industry, we are actively working to decarbonize power sources such as through ammonia co-firing at thermal power plants to achieve carbon neutrality by 2050. Demand for ammonia is expected to dramatically increase in the future due to its use as a fuel, and Tsubame BHB’s high-efficiency ammonia synthesis technology will be a key technology when it comes to future ammonia supply. We plan to utilize our unique plant construction and maintenance technologies as we work with Tsubame BHB and other investors to realize a carbon-free society.

Kenichi Yamaguchi, Senior Vice President of Corporate Finance Department, Division 1 at Development Bank of Japan Inc.
Tsubame BHB is the first company in the world to implement an on-site ammonia supply system based on their innovative technology including catalysts. The innovations that Tsubame BHB have brought to the ammonia industry are expected to help resolve global environmental and food problems. Through the provision of risk money, we will help to strengthen the ammonia industry base together with other related parties to support the innovations of Tsubame BHB.

Executive Manager Yasushi Anashige, General Manager of the Impact Equity Investment Department at Sumitomo Mitsui Trust Bank, Ltd.
We believe that Tsubame BHB can have a significant positive impact on society, such as by helping resolve hunger in Asia and Africa where nitrogen fertilizers are scarce, and resolving environmental problems through fuel ammonia. We have also been promoting a demonstration project to produce hydrogen at low cost from unused regional energy. Therefore, by working with them to promote efforts to build a hydrogen/ammonia supply chain, we will create a positive impact toward the realization of sustainable society.

Toshihiko Honkura, Partner at i-nest capital, inc.
While the conventional ammonia production method has made it possible to supply food to billions of people through chemical fertilizers over the past 100 years, Tsubame BHB’s next-generation technology significantly reduces the amount of energy required for production, making it an environmentally friendly alternative energy production technology. In addition to their technology, the “local production for local consumption” model for implementing the equipment in developing countries is a groundbreaking business, and we are evaluating the future potential of becoming a global leader in this area. In addition to providing funding, we will use our abundant experience with support and networks to help improve the corporate value of Tsubame BHB.

Press Release PDF