Tsubame BHB Co., Ltd. (Head Office: Chuo-ku, Tokyo; Representative Director CEO: Masahiro Watanabe; hereinafter, “the Company”) was selected for the 1st SDGs Business Supporting Surveys (2020) by the Japan International Cooperation Agency (JICA). Moving forward, Tsubame BHB plans to implement the selected project entitled “Basic Survey of Local Fertilizer Production Utilizing Surplus Hydroelectric Power Generation in Laos.”

The company is developing a business that seeks to realize practical-use of on-site ammonia production at small plants. The production uses an electride catalyst which enables high-efficiency ammonia synthesis under low temperature and low pressure conditions. Our submitted plan on the ammonia production system business and related proposal was reviewed and, then selected for the JICA program.
Laos plans to significantly increase its power supply through hydroelectric generation. However, it is possible that the supplied power cannot be fully utilized due to a lack of power transmission lines and a small demand for power. ^{Note 1)} In response, Tsubame BHB has proposed a method that contributes to agricultural production through effective use of electricity. Hydrogen is produced by using electric power to electrolyze water, and ammonia synthesis is performed locally using our technology. Ammonia is a raw material for nitrogen-based fertilizers. Since Laos aims to develop its agriculture, fertilizer production is expected to improve agricultural production efficiency. Another great advantage is that fertilizers can be exported. ^{Note 2)}

Figure: Supply chain of proposed business

The JICA SDGs Business Supporting Surveys matches the development needs of emerging nations with the outstanding products and technologies of Japanese private companies. The program seeks to support SDGs Business (business which contributes to the achievement of SDGs) and to solve issues faced by emerging nations. By doing so, the program aims to enhance bilateral relations through ODA and to further advance economic relations.

The Company aims to realize a sustainable society by expanding our technology of on-site ammonia production at small plants in countries facing the aforementioned issues.

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^{Note 1)} In Laos, a hydroelectric power generation business is being actively operated using the Mekong River system. Accordingly, Laos is known as the “Battery of Southeast Asia.” Theoretically speaking, the potential water power in Laos is said to be approximately 26,000 MW even when excluding the main branch of the Mekong River. It is estimated that approximately 18,000 MW of this power can be developed. However, the network of transmission and distribution lines in the remote areas of Laos bordering neighboring countries has not been sufficiently developed. Despite the abundant power generation in the whole country, there are some areas of Laos that import electricity from neighboring countries (source: JICA (2014) Review of Current Status and Issues of Power Sector in Laos).

^{Note 2)} The annual power generation in Laos in 2019 was 31,230 thousand MWh, of which exported electricity was approximately 24,400 thousand MWh. (Source: JETRO homepage) According to interviews with Lao ministries and agencies, surplus electricity can only be exported to neighboring countries, so it is difficult to set high prices. We have received a commitment that using Tsubame BHB’s technology to produce ammonia and fertilizer would make it possible to set high prices and thus create significant benefits for Laos.

About JICA

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