Nikkei. Nippon Kasei Chemical Co., a subsidiary of Mitsubishi Chemical Corp., will increase production of high-grade aqueous urea solution used in SCR (selective catalytic reduction) systems to reduce NOx emissions from diesel engines.
Nippon Kasei Chemical plans to raise the annual production of the substance at its plant in Kitakyushu to 10,000kl, five times the current 2,000kl output.
The Kitakyushu plant is currently operating at about 20% capacity. With investments of around ¥100 million (US$845,000), the company will add storage tanks, filling equipment and the like. In 2007, the company plans to operate the plant at just over 50% capacity, reaching full capacity in 2009.
Nippon Kasei has just over a 40% share of the domestic market for the product. The company has been marketing the substance under the AdBlue name since December 2004.
In Europe, 80% of diesel trucks use urea-SCR systems. In Japan, Nissan Diesel Motor Co. installs such systems in its vehicles. Mitsubishi Fuso Truck and Bus Corp. plans to begin sales in the spring of 2007 of new vehicles that employ the systems.
Japan’s demand for high-grade aqueous urea solution is currently about 20,000kl a year, but industry sources expect that to rise to 600,000kl in the future.