The Road to Decarbonization: Insights from Mitsubishi Heavy Industries

The Challenge of Decarbonization in Industry

The global industrial sector is facing a monumental challenge: reducing carbon emissions, particularly in hard-to-abate industries that are resistant to decarbonization due to their reliance on high-carbon processes. At the forefront of this effort is Hitoshi Kaguchi, Senior Executive Vice President, President, and CEO of Mitsubishi Heavy Industries (MHI) Group’s GX Solutions. Speaking at CERAWeek, a major energy conference held by S&P Global in Houston, Kaguchi emphasized the need for practical solutions and the importance of learning from successful projects to accelerate decarbonization efforts. He stated, "The industrial world has a major challenge of lowering carbon emissions, especially in hard-to-abate segments. Only supporting decarbonization ventures and extrapolating the lessons from successful ventures to apply elsewhere will set us on the right path. That is certainly our philosophy."

The Role of MHI in the Energy Transition

MHI Group, under Kaguchi’s leadership, is playing a pivotal role in supplying cutting-edge energy transition solutions, including hydrogen, ammonia, carbon capture, and transportation technologies. These solutions are critical for industries aiming to reduce their carbon footprint. While the company is exploring multiple avenues, its primary focus for the remainder of this decade is on carbon capture, with hydrogen production being the next priority. These technologies are seen as essential for achieving long-term decarbonization goals, particularly in sectors where emissions are difficult to reduce.

Flagship Projects in the United States

MHI Group’s decarbonization efforts are exemplified by two landmark projects in the United States. The first is the Petra Nova Carbon Capture Project, located in Thompsons, Texas. This project, which began commercial operations in December 2016, is the world’s largest post-combustion carbon capture facility operating on a coal-fired power plant. It captures an impressive 4,776 tons of CO2 daily, achieving a 90% capture rate. This project demonstrates the feasibility of large-scale carbon capture and serves as a model for future initiatives.

The second project is the Advanced Clean Energy Storage (ACES) initiative in Delta, Utah, a joint venture between Mitsubishi Power Americas and Magnum Development. This facility, which is set to begin operations this year, is designed to be a state-of-the-art green hydrogen hub and storage facility. With a $504.4 million loan guarantee from the U.S. Department of Energy (DOE), it aims to produce, store, and deliver green hydrogen to the Western United States. This project underscores MHI’s commitment to advancing hydrogen as a key component of the energy transition.

Lessons Learned and Long-Term Vision

Both projects have provided valuable insights and reinforced MHI’s long-term vision for decarbonization. Kaguchi noted that these initiatives not only contribute to the company’s learning and strategic thinking but also highlight the importance of adopting a 40-year horizon for planning. He emphasized that while the market for sustainable solutions may experience fluctuations, MHI remains committed to decarbonizing hard-to-abate sectors. Kaguchi highlighted the growing opportunities in this space, from investing in cleantech startups to executing large-scale projects.

The Evolving Landscape of Sustainable Solutions

Kaguchi also acknowledged the changing landscape of the sustainable solutions market. He observed that the momentum for sustainability solutions began to build around 2018, accelerated during the COVID-19 pandemic, and reached a peak in 2023. However, he noted that the market has since plateaued, with a degree of normalization. This is a natural part of the business cycle, and MHI is well-positioned to navigate this shift. Despite the changing environment, Kaguchi remains optimistic about the prospects for decarbonization, particularly in hard-to-abate industries. He emphasized that MHI will maintain its research and development spending and continue to invest in green technologies and partnerships.

MHI’s Commitment to a Sustainable Future

In conclusion, MHI Group is steadfast in its commitment to advancing decarbonization solutions. By leveraging its expertise in cutting-edge technologies like carbon capture and hydrogen production, the company is helping to pave the way for a low-carbon future. Through projects like Petra Nova and ACES, MHI is