Japan’s Mitsubishi Heavy Industries (MHI) has launched a new issuance (third series) of five-year green bonds totaling ¥10 billion ($67 million) to support its decarbonisation projects, including those focused on clean hydrogen production and utilisation.
MHI has detailed how the proceeds will be allocated, now including synthetic fuels made from low-carbon hydrogen among other zero-carbon technologies. The funds will support projects for producing green hydrogen and ammonia from renewable energy, as well as blue and turquoise hydrogen and ammonia from fossil gas with captured and stored carbon emissions.
In addition to hydrogen-based direct iron reduction for green steelmaking, MHI plans to invest in hydrogen and ammonia for power generation, including co-firing with fossil gas or coal, and exploring technology for 100% hydrogen or ammonia firing. The use of these fuels in power generation has faced criticism regarding their effectiveness in reducing emissions.
MHI has updated its Green/Transition Finance Framework to incorporate the latest principles and guidelines, align with its 2024 Medium-Term Business Plan, and include new funding areas such as solar power, biogas production, nuclear energy, and sustainable aviation fuel (SAF). The bonds are issued under this revised framework.
The Group is focusing on two growth areas: “Energy Transition” for decarbonising the energy supply side, and “Smart Infrastructure” for enhancing decarbonisation and energy efficiency on the demand side. To advance these goals, MHI is utilising sustainable finance mechanisms, including transition bonds and green bonds.