JERA on track for 20% ammonia co-firing at Hekinan power plant
Japan's biggest power generator JERA is on track to achieve 20% ammonia co-firing at a unit of its Hekinan thermal power station in fiscal 2029, marking the world's first commercial use of ammonia as a fuel.
Mitsutaka Ban, head of Japan's largest coal-fired power station, was speaking to reporters at a presentation of facilities at the 4.1-gigawatt plant in central Japan, including four large ammonia fuel storage tanks being built as part of the project.
The project, aimed at reducing carbon emissions, is moving ahead despite weakening momentum in global energy transition, as high costs for hydrogen, ammonia and other materials have led energy firms to scale back or delay investments.
"It's undeniable that the investment environment for hydrogen, ammonia, and renewable energy has become extremely stagnant," Ban told reporters. "But we believe continuing decarbonization efforts is the best way to prepare for the future."
Ammonia, hydrogen are key for Japan's climate efforts. Hydrogen and ammonia, which emit no CO2 when burned, are key to Japan's strategy to tackle climate change.
JERA plans to begin commercial co-firing of 20% ammonia at the plant's 1-GW No. 4 unit and has secured a 15-year government subsidy to cover the cost difference between ammonia and coal. It aims to start importing ammonia in 2029 from a planned U.S. production facility.
The company has formed a JV with CF Industries and trading house Mitsui to build one of the world's largest low-carbon ammonia plants in Louisiana, the $4 billion Blue Point project.
JERA, jointly owned by Tokyo Electric Power and Chubu Electric Power, plans to offtake 490,000 metric tons annually, most of it for Hekinan, where 500,000 tons annually are needed for 20% co-firing at one unit.
After achieving that goal at the No. 4 unit, JERA aims to extend the technology to another unit and is considering demonstrations targeting over 50% blending, as part of its goal to reach net-zero emissions from domestic operations by 2050.
Electricity generated from the project could be sold with a premium via wholesale markets or directly to customers through power purchase agreements, Ban said.
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