Japanese power generator JERA has signed separate heads of agreements with Mitsui O.S.K. Lines (MOL) and NYK Group for the charter of ammonia carriers, as it moves toward establishing Japan’s first large-scale
Japanese power generator JERA has signed separate heads of agreements with Mitsui O.S.K. Lines (MOL) and NYK Group for the charter of ammonia carriers, as it moves toward establishing Japan’s first large-scale low-carbon ammonia transport chain.
Under the agreements, MOL and NYK affiliates will charter vessels designed to transport low-carbon ammonia produced at JERA’s Blue Point Complex in Louisiana to JERA’s Hekinan Thermal Power Station in central Japan. The arrangements are expected to support the first commercial shipment of fuel ammonia to Japan.
MOL signed two heads of agreements with JERA covering two very large gas carriers (VLGCs) designed for ammonia transport, while NYK Bulkship (Asia), a unit of NYK Group, also signed two separate heads of agreements for ammonia carriers under time-charter arrangements.
The ammonia to be shipped will be produced at the Blue Point Project in Louisiana, a low-carbon ammonia production development in which JERA has invested alongside CF Industries and Mitsui & Co., following a final investment decision.
Ammonia is widely used in fertilizers and chemicals but is increasingly viewed as a next-generation clean energy source because it emits no carbon dioxide during combustion. Japan is seeking to use ammonia as a fuel for power generation and
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