Taiwan Fertilizer and CIP Sign MoU for Collaboration on Diversified Power Conversion and Low-Carbon Alternative Fuels

Lee Sun-jung, Chairman of TFC (Left)｜ Marina Hsu, Regional President of CIP(Right)

The Copenhagen Infrastructure Partners (CIP) Energy Transition Fund (ETF) and Taiwan Fertilizer Company (TFC) have signed a Memorandum of Understanding to collaborate on various power-to-x (PTX) technologies, low-carbon alternative fuels, and other energy transition areas. Hydrogen energy and its derivative low-carbon alternative fuels will play a crucial role in the global energy transition, particularly by providing commercial-scale low-carbon solutions for hard-to-abate sectors such as chemicals, steel, and shipping. President Lai Ching-te has announced the commencement of a second energy transition phase to accelerate hydrogen development, while the Ministry of Economic Affairs will establish a "Hydrogen Energy Regional Center." This initiative will be led by state-owned enterprises to conduct technology verification and expand hydrogen applications across industry, transportation, and power generation sectors.

TFC, Taiwan's largest modern fertilizer producer, boasts robust technology and equipment in chemical manufacturing and raw material storage and transportation. In light of the global carbon reduction trend and in support of the government's 2050 net-zero emission policy, TFC is actively promoting clean energy businesses. This collaboration with CIP will encompass multiple aspects of low-carbon alternative fuels, including the local production, import, storage, transportation, and application of low-carbon hydrogen and low-carbon ammonia.

The CIP Energy Transition Fund, with a total of 3 billion euros (approximately NT$105.5 billion), is the world's largest fund dedicated to the development of clean hydrogen and low-carbon alternative fuels. CIP has deployed numerous PTX projects in Europe, the Americas, Australia, and Asia. In 2023, CIP won a total of 480 million euros in subsidies from the European Hydrogen Bank's first bidding round, accounting for two-thirds of the total subsidies for that round, underscoring CIP's recognized expertise in PTX development and applications.

Philip Christiani, Partner at CIP Energy Transition Fund, stated that Taiwan has a clear 2050 net-zero policy guideline and plays a critical role in the international supply chain, indicating a significant future demand for low-carbon solutions. CIP has many years of project development experience and achievements in Taiwan and is honored to collaborate with TFC, a like-minded partner in promoting energy transition. CIP will leverage its global PTX deployment and TFC's strong local capabilities to jointly advance the application of low-carbon technologies in Taiwan.

Lee Sun-jung, Chairman of TFC, noted that TFC has been the largest domestic supplier of liquid ammonia for decades, traditionally using ammonia solely as a fertilizer raw material. Ammonia is, in fact, the best medium for new-era energy transport. It is currently the best storage material for green energy development, can be produced entirely without fossil energy, and generates zero carbon emissions during combustion for power generation, making it crucial for achieving the government's 2050 net-zero emission target.