JERA signs time charter agreements with NYK and MOL for fuel ammonia carriers
JERA Co., Inc. (JERA), a global energy leader and Japan’s largest power generation company, has entered into time charter agreements with NYK Bulkship (Asia) Pte. Ltd (NYK) and Mitsui O.S.K. Lines, Ltd. (MOL), under which each company will provide two fuel ammonia carriers, for a total of four vessels.
By securing the transportation component of the value chain, the agreements mark another important milestone toward establishing Japan’s first commercial-scale low-carbon ammonia value chain.
The agreements build on the memorandums of understanding signed in November of 2022. The carriers will be used to transport low-carbon ammonia produced at the Blue Point Project in Louisiana, U.S. The ammonia is expected to be used at JERA’s Hekinan Thermal Power Station, one of Japan’s largest thermal power plants, enabling commercial-scale ammonia substitution combustion with a 20% heat value ratio, This Low-Carbon ammonia supply chain operation is planned to begin around fiscal year 2029.
Increasing carrier capacity is critical to procuring and transporting large volumes of low-carbon ammonia at a more competitive cost, particularly for use in power generation as well as by other commercial and industrial customers.
Under the agreements, NYK and MOL will each provide two Very Large Gas Carriers (VLGCs). This marks the world’s first long-term deployment of VLGC-size carriers for ammonia transportation.
“These agreements with NYK and MOL represent a major milestone in JERA’s efforts to establish Japan’s first commercial-scale low-carbon ammonia value chain,” said Irtiza Sayyed, Sr. Managing Executive Officer, JERA Co. “We are deeply grateful for the partnership and shared commitment of NYK and MOL. Together, we are laying the foundation for a commercially viable low-carbon ammonia supply chain which connects production, transportation, and end use; contributing to Japan’s decarbonization goals.”
Under its JERA Zero CO2 Emissions 2050 initiative, JERA aims to achieve net-zero CO2 emissions across its domestic and international operations by 2050. In addition to expanding renewable energy, JERA is working to advance zero-emission thermal power generation. JERA will continue collaborating with leading partners in Japan and around the world to develop and expand low-carbon hydrogen and ammonia value chains, in line with the company’s mission to provide cutting-edge solutions to global energy challenges.
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