This is Kazuchika speaking. This is another directly impacted by the present. We will be moving forward in implementing energy transition as a whole of the company, and we expanded the growth area at the same time. As also, part of the title here. Now that, for the past 12 years, we want to talk about the update on what we did on energy transition and what we expect to go. Want to go through them on a front basis. Let's turn to the agenda page. Here's our agenda. It was just introduced by, you know, UE. We will talk about in 3 parts. The decarbonizing existing infrastructure, this is related to existing plans. Hayashi, the Energy Domain Head, will go over. Next page, please.
First of all, for the past year, let me share how I felt and the major changes happened in the world. A lot of them, you already know about them, so I want to look back what exactly happened. Globally, I feel strongly that the energy transition has accelerated a lot. The invasion into Ukraine happened, caused the economic energy crisis. At the beginning, I thought energy transition it may be delayed a little bit than originally expected. When I look at the actual situation, it has been actually accelerated. Partly in Europe, the energy costs went up so high, so that renewable energy project had to be suspended, including production of hydrogen. The renewable energy can be utilized or could produce locally, no need for the importing.
There is a momentum to see the use of such a renewable energy. Energy transition, many focus on renewable energy have been accelerated a lot more after going through the invasion into Ukraine. Another major topic is in the U.S., in last August, Inflation Reduction Act was enacted. That was another major move, and a lot of incentives are provided, and it can be applied for 10 years or 20 years. The guarantee, economical guarantee is provided for that long. Many projects are considered and activated a lot. In using CCS, basically $85 per ton is incentivized, and the clean hydrogen created will be incentivized by basically $3 per kg.
Considering these incentives, they're creating blue hydrogen, going after CCS, and then run them on a gas line, could be more effective than the natural gas in some cases. Many different opinion and many different projects are considered right now by different parties. Thirdly, in APEC, many actions are taking place right now. Simply put, especially in Singapore. They are trying to be a green country, more advanced country in green energy, by implementing various projects, by the government. They are all working on that. Many business entities are actually coming to us for cooperation. Also in Australia, they also are working on. They expect to have a huge amount of excess, renewable energy. They have power, solar power, the wind power generation.
Those are resource countries with coals and gases, but they also want to be an exporting country for green energies. We're working together. We are having many discussions on technologies at this point with them. The second point is actually related to internal situation. In 2021, the Mitsubishi Power is now integrated into MHI as part of the energy business. Following that, MHI Engineering is now integrated into MHI. The major purpose of this integration is to accommodate the energy transition. The CCS, hydrogen, can be all handled in an integrated manner under the same control. Those are the major movement we saw. Next page, please. In today's explanation, on the right-hand side, we have some pictures. April 5th, this year, President Izumisawa explained them.
I just took the excerpt of the presentation. Energy transition covers both the production and usage of energy. Today, we focus on supplying part of energy when it comes to transition. Next slide, please. On the left, we have, this is according to the report from McKinsey, IEA scenario. We have looked at all this information. This represent what we expect to see or what we hope to see. This is the usual information. Right now, three-
150, right now 35 billion tons also CO2 was created. Very little CCS. When we achieve neutral in 2050, we need to reduce by 7 or 8 billion tons. Hard to abate. Industries are seen in this area, such as cements, will be remaining. The CO2 created from the industry will need to be captured to bring it down to zero. The CO2, the CO2 captured, there is a certain demand. Also we will use hydrogen to reduce the production at the same. That's what's expected. Those are the way our three pillars try to decarbonize the existing infrastructure. Hydrogen process solution ecosystem to the build, CO2 capture, storage, and usage. Those are the three measures that we are thinking to build CO2 neutrality.
Let me hand over to Hayashi now.
I am Hayashi, the Head of Energy Domain. Thank you. Chapter 2: decarbonizing existing infrastructure. MHI has proposed a decarbonization of existing thermal power plants as a means to help achieve carbon neutrality. It versus the base. This is the CO2 emission from coal-fired power plants. It's starting as 100 and showing the reduction from... In coal-fired power plants, which is the top line, ammonia ion as coal-fired, a method to reduce the CO2 first. Or the age, coal-fired power plants will be that lower line replacing them with a high efficient gas turbine to reduce CO2. The gas turbine and also CO2 capture, CCUS, will be combined together to further reduce CO2.
This is not just for gas turbines, but also the coal-fired boilers on the line, top line, can apply this technology. It can also reduce CO2 at the same time. In addition, in the future, we're converting fuels to hydrogen and others, we are proposing a way to decarbonize the electricity supply, which is shown in the far right in blue, where it says CO2 is zero. This is not today's topic, but utilizing nuclear power as much as possible is another path to decarbonizing electricity. Next page, please. This is showing our technology development operations towards decarbonization. On the left, this is operation developing element technologies. On the right-hand side, this is the validation facility in firing a thermal power plant.
Elemental technology development in decarbonizing thermal power is in Takasago and Nagasaki, where we have manufacturing and research centers. We are currently making preparations for a site in Takasago that will enable integrated long-term validation of these technologies under actual conditions. This is what we call Takasago Hydrogen Park. This process of similarly validating new decarbonization technologies under actual plant operating conditions before bringing them to market is what is behind a lot of MHI's greatest strengths, which is the high reliability.
Our gas turbine, our flagship products, they're being developed to comply with the strictest standards in the world, Europe's CO₂ emission regulations. On the left-hand side, we saw EU Taxonomy and CO₂ emission zero combustion technologies. The pictures are shown here. In the center, there is a graph. Where you see a dotted line, it shows EU Taxonomy, 270 gram per KW per hour. In the red solid line, it shows large-scale gas turbine development situation. In green line, it shows mid-size to smaller size gas turbine development situation. Regarding for our large frame gas turbine, we are aiming to commercialize this technology in 2025. It's a dry low NOx combustor. Using that in this combustion test, we have already completed the 50% of mix of firing combustion tests using conventional combustors.
This allow us to meet the EU Taxonomy of CO₂ emission standard of 270 gram per kWh. In the future, we'll continue to develop a new type of combustor with the aim to achieve 100% hydrogen combustion in large gas turbine by the end of 2030. Next, the green line. We're also developing a technology to support compatibility with zero carbon fuel such as hydrogen ammonia in small to mid-size gas turbine. In 2022 time, we successfully conducted 100% hydrogen firing combustion test using a single combustor. Validation of these combustion technologies is scheduled to begin this fiscal year at Takasago Hydrogen Park that we have introduced to you at a utility scale power plant. You see a picture on the top right.
Also at Takasago Hydrogen Park, in addition to water electrolysis, we plan to begin practical testing on hydrogen production technologies such as SOEC and methane pyrolysis, which are being developed in-house. I'd like to explain more in the chapter 3, next section. This page shows our most advanced gas turbine, the JAC-Series. As I explained in the first page. Simply replacing a coal-fired thermal power plant and LNG-fired GTCC system can reduce CO₂ emission by almost 65%. It's highly efficient and reliable. These JAC-Series gas turbine are perfectly suited to replace coal-fired thermal power with lower carbon-based load power. This page shows the CO₂ capture system at a GTCC plant. From the boiler, capturing the heat that we would bring it to this CO₂ capture system.
In addition to the demand for replacing coal-fired thermal power, Europe or U.S., where decarbonization efforts are accelerating. The preliminary engineering design for a project to install CCUS CO2 capture system at GTCC plant is on the way. We have received orders for preliminary front-end engineering design in Alberta, Canada, Scotland, responding to the needs for further decarbonization. Converting a gas turbine to hydrogen or ammonia can be achieved relatively easily by replacing combustors that will continue to use original compressor and turbine parts. We have different types. Type 3 being ammonia. This kind of combustor we have already developed, or they are under development. Converting gas to hydrogen, ammonia can be done through the compressor on the red part on the right-hand side. Compressor and the turbine can be utilized just as is.
Only thing is to replace the combustor. It's relatively simple process. On the top right, you see the various type of combustor. Sorry, bottom right shows the various type of combustor, type one, type two, type three, using hydrogen firing gas turbine. Since the 1970s, MHI has manufactured gas turbine, which use hydrogen-rich off gas from oil refineries, steel mills, and other facilities. Using large frame gas turbine combustors, we successfully completed mixing, mixed firing combustion tests at 30% by volume by hydrogen in 2018, and 50% by volume hydrogen in 2022. At Takasago Hydrogen Park, we plan to validate mixed firing at 30% by volume in 2023 using production model gas turbine.
Using a small to midsize gas turbine combustor in 2022 last year, we have completed the development of 100% hydrogen firing. We have actual production model, small to midsize gas turbine at Takasago Hydrogen Park. We plan to perform validation testing of this technology on the production model gas turbine at during FY 2023. We expect to commercialize 100% hydrogen firing in larger frame gas turbine by 2030, and in small and midsize gas turbine in 2025 onwards. Ammonia, which as a hydrogen carrier, is easier to handle than hydrogen, is also effective as a carbon-free fuel too.
We have started development of a 40-KW class gas turbine system which directly uses 100% ammonia as a fuel. We are aiming to run on production equipment and commercialization in 2025 or thereafter. This page shows our roadmap for ammonia-fired power generation. As explained, ammonia are similar to hydrogen. It's a clean fuel. Ammonia can be used as hydrogen carrier too, for capture and for transport as well. The top picture shows that we expect the commercialization in 2025 after to run on production equipment to use a 100% ammonia as a fuel. We have conducted a mixed combustion test with 20% coal and later 50% by volume mix in 2025 time.
This slide shows our Takasago Hydrogen Park. On the right-hand size shows our path overview. Our left, on the left-hand side shows as of May 2023 how much has been developed. A mid to small size hydrogen position and a large frame GTCC in our production facility where they are placed shown on this picture. Hydrogen gas turbine early commercialization to realize that R&D and production and also Takasago machineries where they are doing verification. We have this Takasago Hydrogen Park is the first facility in the world where integrated validation from production to power generation is possible. Right now partial operations started, and preparation for full operations are underway.
Regarding hydrogen production system, in addition to water electrolyzers already selected for use, we plan to perform phase-testing validation of next-generation hydrogen production technology, including turquoise hydrogen. The use of this demonstration facility is expected to make a significant contribution to the widespread use of hydrogen and the real-world implementation of hydrogen power. In order to realize a carbon neutral, the various technology developments are underway in Nagasaki district. We have our R&D center, and we also have Nagasaki Shipyard Machinery Works to handle manufacturing. In order to develop the practical application of cutting-edge decarbonization products and technologies, we're working as one group. This shows our R&D and facilities. These facilities is developing ammonia burners, biomass power, hydrogen production, and CCS, which will contribute to decarbonization in a wide range of areas. This page shows our hydrogen-fired gas turbine project.
MHI is participating in the business developing areas leading to the utilization of hydrogen. In around the world, we are participating in various development project and collaborate within and outside our companies. This map shows our various hydrogen business development initiatives are in North America, Europe, Singapore and Australia. In particular, I would like to introduce Intermountain Power in the Utah, the U.S., project using hydrogen fires a GTCC power generation project, and there will be more explanation in the following section. This page shows in addition to hydrogen, our participation to the power generation project using ammonia fuel. This is also around the world too. There are many power generation project that we participate using ammonia fuels.
In Singapore, we are working together with multiple power generation companies to investigate the feasibility of commercializing ammonia-fired GTCC power generations. Also, many countries are also considering installation of ammonia mixed firing technologies at existing thermal power plants. Just last year alone, we have executed cooperation agreements with customers in Thailand, Taiwan, Indonesia, Chile and other countries. From now, I'd like to talk about efforts to build hydrogen and CO2 solutions ecosystem.
Let me continue to talk about the efforts to build hydrogen and CO2 solutions ecosystem. Hayashi just explained about hydrogen gas turbine. Where to source the hydrogen? The balance chain is going to be a major challenge in line ahead. Not just the products, we are intent to take various initiatives such as technology. This page is showing a high-level image of energy sources and how to produce the hydrogen, how to store and where to be used. That's put together in a summary. In this image. The red boxes are the one that we develop ourselves. In-house technologies, all those and the one already provided by us. The gray boxes, for example, methane reforming, things like that, will be achieved by partnering, working with startups or other. You know, using license from other parties.
We consider those opportunities as well. Within the hydrogen solutions ecosystem, we want to accomplish green hydrogen. The renewable energy into storage at the bottom to go through water electrolysis, we obtain hydrogen from water, we transport them as is or transport them in different formats, such as in ammonia, and that could be the final image. As a part of the transient form, maybe using natural gas can be in the blue condition to transport. What we call turquoise, the one second from the top. The natural gas equals methane, from methane we generate hydrogen and not the CO2, but C, the, you know, solid carbon and black carbon to be stored somewhere that is considered at the same time. Many different options are being developed.
There's more details to come on the storing side, where it says hydrogen storage. You know, as we build the value chain for hydrogen, let's say once we produce hydrogen, then they are used right away. No need for having a storage location. If they're stored, they have to be stored over the different seasons to continue generating power, the storage also hydrogen, it will be a major challenge, and having many huge tanks. Well, if it's at the Takasago location, we are compressing hydrogen, but it can be a huge amount. The most simplest, the most economical method is to use underground storage. That's underway, which will be mentioned later. That's the high level overview. Another key point on the far right, utilization. Our gas turbine was already introduced.
The gas engines, hydrogen gas engine, using H2 engine turbo is one thing. Hydrogen reduction iron making. Our subsidiary called Primetals, is leading this technology to work on this in a reduction iron making using hydrogen. Next slide, please. This is about the production of hydrogen. Generally speaking, they take water, and they go through the alkali water electrolysis. In the future, more co-efficient method concerning the use of turquoise hydrogen, we are looking at different initiatives, and we are listing the major development we are working on right now regarding turquoise. We take the natural gas, and we use the heat, H2 dissolution, and just take out, and then we take out the hydrogen and leave the carbon as black carbon.
The elemental development testing is going on right now, and we go through the validation, and we expect the commercialization to come in late 2020s. This is going to be also verified at Takasago eventually. SOEC is shown at the bottom, solid oxide electrolysis cell. SOFC is a reverse reaction, of SOFC can be utilized in a very high temperature ceramics cell as steam is going through this cell to generate hydrogen more efficiently. Energy efficient is quite good and very high in this methodology. We're looking at such a electrolysis cell. We are developing this technology and intend to verify, demonstrate at the Takasago Hydrogen Park as well. Next slide. This is one of the topics we wanted to share, ACES, Advanced Clean Energy Storage project.
This is taking place in Utah in the United States. The power coming from this hydrogen can be brought over to the area. The purpose of this project on the west coast on U.S., they use a lot of, they are, like, more advanced in renewable energies using the windmills and solar power. At the same time, California is very good in weather. They have very good weather, so good during the summer, but the spring they have good weather but not so strong in demand. From February through June, a huge amount of energy will be available as an excess, so we can store them in Utah. There's already a transmission line existing, so we can send them over to Utah, then we go through electrolysis, and we can store them under...
The capacity is about 220 MW. 220,000 KW worth of electrolyzer established to generate hydrogen and 4 tons per day of hydrogen being produced. For this project, in June of 2022, the DOE, Department Energy, approved this. We made a decision, investment decision after that. From the end of last year, we started the construction. Currently, we're making about 40% progress in this project. The pictures are too small to see again. Can't really tell what they are. How to store underground is as follows. There's a huge sand dome. We drill in this dome about over 1,000 meter in depth. We run the water, we melt them, and we create a dome. The hollow cave is created where we store hydrogen.
It's over 1,000 meter in depth. It's very deep. It can be pressurized a lot more, 200-300 PSI. It has to be compressed into a higher pressure to be stored. As a buffer, the amount of storage is at about 10,000 tons worth of storage should be ensured. We store hydrogen during the summer to be utilized for the peak time in the summer. That's how we can level up the usage throughout the year. We will have a JAC gas turbine, the cutting edge technology I introduced, the two of them introduced to generate 840 MW. We can level up the energy throughout the year. This is the very first trial in a project. The project is attracting a lot of attention globally.
Such a huge water electrolyzer is now introduced. There are only about three projects with the FYG level. We need to make sure that we will participate in this effort. Next, CO2 ecosystem or CO2 solutions ecosystem. On page 24, this is showing the total value chain. As you can imagine, so we take, you know, sources of CO2 and bring them over to the storage or to be reused. That's what's shown on this page. There are other options to go. On the next page, this is showing our major efforts in four different parts. First is capturing CO2. For example, out of the thermal power plants, CO2 is generated, like a gas turbine generates CO2, we capture them. The gas percentage-wise, for the thermal power plant, it's about 10%.
For gas turbine, it's less than that, about 4%. From there, we can obtain the pure CO2. That's stage one. We transport them, and it's many different methodologies. Basically thinking about pipeline or a marine transport or ground transport. Storage is next part. Recycling, the reuse of CO2, which is in carbon recycling. Those are the four major areas where we take various initiatives and actions. Starting with CO2 capture on page 27. Our mission about IRA in the U.S. When we implement CCS, to capture 1 ton worth of AD CO2, the tax incentive worth $85 will be incentivized, so you receive that much of credit. This gives a good benefit or advantage. On the left, this is expected carbon capture amount in total.
480 million tons can be captured according to this table. $80, you know, per ton incentive on how much would that be equivalent to JPY 4 trillion. At this timing, actually, this is some. It's gonna be about $65 per ton at this year. With that level of incentive, incentives, this is the amount we can expect as incentive, incentives in just on the U.S. market. That's how big that the business is. We provide equipment and facility, or we can be engaged in the transporting. There's a huge business opportunities. At next actions, the second bullet point, the Clean Energy Demonstration Department in DOE will be also supporting. For a project with the FEED stage will be supported by them.
As you can see, there are 8 projects being selected right now. Out of these 8 projects, 3 are using our technologies. They are using our technology in considering the project. Our technologies are considered to be quite promising. At the far right, there is a pie chart image I'm showing, 70% of the pie. This is the post-combustion capture technology area. In this technology, according to the install bases, comparing to other peers, this is how much we have a market share. We have 70% share. In Texas, the Petra Nova plant, there is a huge plant and they have a demonstration plant handling 5,000 tons per day. That is quite huge contributor, but we are achieving huge options now.
Our strengths of our technology. We continue to seek further efficiency. CO2 capture using amine as a medium to capture and reheat it to decompose. It's quite energy-intensive, so we would like to rationalize that. Amine that we need to melt, we need to avoid degrading. Together with Kansai Electric Power, we've done various joint development and research. We are using KS-21 absorbent to do so. The previous generation amine liquid, KS-1 versus more advanced KS-21. The quantitative comparison, the degradation, and the volume expectations, those all summarized here. There's high hopes for this new absorbent. In order to improve our applicability, we can't handle all. There are many players who are considering this technology, so we are interested in de-developing, having a license partner. We signed a license partnership with Italy's Saipem.
It's a leading Italian engineering company, so we would like in overseas project, find a partner, the licensors. For the smaller scale project or carbon capture in totally different sectors, steel iron making, cement, waste-to-energy, gas engine, and there are various verification, validation underway. We've been working with these partners on the right since last year. From page 29 onwards is about the CO₂ transport. Some of the typical example shown on page 30 shows CO₂ transport technology. This photo is to validate the transport technology within Japan. Liquefy the CO₂, then from Maizuru to Hokkaido's Tomakomai, we are transporting it. We plan to complete this verification within this year with this vessel. In Japan, there aren't too many pipeline for transport, so we have to rely on maritime transportation.
How to scale that is really a key to commercialization. The bigger the vessel is better for us. We've been working with the various partners to drive this maritime transport. In the following page, 31, it's about the CO₂ storage technology. We don't get into the CO₂ storage business, but in order to do CCS, we need to not only capture, but we need to store. Where to store becomes critical. Oil majors already have access to the land that is appropriate for storage. Energy companies are seeing, you know, a business opportunity in the CCS part. We just announced a alliance with ExxonMobil for this initiatives. On the right-hand picture shows Japan's joint study case. Japanese government by 2030 wants to validate several projects, and that's already being announced.
MHI is interested in participating in that study. We do need to have several partners to participate. Hopefully in 2030 time, we would like to realize a domestic storage CCS. Lastly but not least, carbon recycling. CO2 is something that people dislike today. The reason why we are investigating carbon recycling is that, one, when we will be charged for carbon emission, carbon through carbon tax. What type of carbon, who has emitted this carbon, becomes very important. Verifying that becomes important because there will be tasks when e-fuel, e-methanol or e-methane and those synthetic fuels. Once there will be a commercialization for the industry use, we need to revisit CO2 as a material to use.
We need to understand the nature of CO2 and how to get them, how to source them. Including all that and developing the right network is important. That's what we are proposing here in this CO₂NEX initiatives. We would like to emphasize this effort down the road. This concludes our presentation. In conclusion, in page 36, I listed our key takeaways. I think R&D development project is showing significant progress, especially in gas turbine of our technology. Regarding development ecosystem, each business is a sizable business, so legal framework needs to be established, otherwise we can't start. There are many players who are studying and trying to, you know, establish the right framework, and we would like to offer right information, right technology to the marketplace. Anyhow, this is a very important area for our business.
That's all from us. Thank you very much.