JERA signs an agreement with MOL and NYK

JERA, a joint venture between utilities TEPCO and Chubu Electric Power Company, has signed memorandums of understanding today with the nation’s two largest shipping lines, Mitsui OSK Lines (MOL) and Nippon Yusen Kaisha (NYK), to cooperate in transporting ammonia for the Hekinan Thermal Power Plant, which is expected to begin commercial operation in the late 2020s. The MOUs cover the joint examination of ways to develop large-volume ammonia carriers as well as ammonia-powered propulsion and to establish safe transport systems.

The Japanese government last year mapped out plans to develop significant ammonia fuelling plans for its utility and shipping sectors.

Japan’s Ministry of Economy, Trade and Industry has detailed procurement strategies to ensure the country’s power and shipping industries are using 30m ton of ammonia by 2050 in line with the country’s carbon neutral ambitions.

The aim is to start the commercial use of ammonia this decade, and halve the price of the fuel by 2030.