MOL and JERA Sign Agreements for Japan’s First Large-Scale Low-Carbon Ammonia Transport Project

Mitsui O.S.K. Lines, Ltd. (MOL) has signed two Heads of Agreements with JERA Co., Inc. covering the time charter of two very large gas carriers (VLGCs) designed for ammonia transport. The vessels will carry low-carbon ammonia from the JERA-invested Blue Point Complex in Louisiana, U.S., to JERA’s Hekinan Thermal Power Station in Hekinan City, Aichi Prefecture.

The agreements mark the start of what the companies describe as Japan’s first commercial-scale low-carbon ammonia transport project.

Project background and scope

MOL and JERA have been in discussions since November 2022 on collaboration related to fuel ammonia transport. The newly signed agreements build on those talks and are intended to support the development of a commercial low-carbon ammonia value chain, from production to end use.

Under the arrangement, ammonia produced at the Blue Point Complex will be shipped to Japan for use at JERA’s Hekinan Thermal Power Station, one of the country’s key thermal power facilities.

Role of ammonia in decarbonisation

Ammonia is widely used as a feedstock for fertilizers and chemicals and is also being explored as a next-generation energy carrier. It does not emit carbon dioxide during combustion and is being evaluated for applications including power generation, marine fuel, and as a hydrogen carrier. These potential uses have led to expectations of increased demand over the coming decades.

MOL’s environmental strategy

The MOL Group positions environmental strategy as a core element of its long-term management plan, “BLUE ACTION 2035,” and has set a target of achieving net-zero greenhouse gas emissions by 2050 under its “MOL Group Environmental Vision 2.2.” As part of this approach, the company aims to be involved in the development of an ammonia value chain, while continuing to build operational expertise in the transport of ammonia.

Key facts

• Companies involved: Mitsui O.S.K. Lines, Ltd. and JERA Co., Inc.
• Vessels: Two ammonia-capable very large gas carriers (VLGCs)
• Route: Louisiana, U.S. to Hekinan, Aichi Prefecture, Japan
• Cargo: Low-carbon ammonia
• Use case: Power generation at Hekinan Thermal Power Station