NYK Group and JERA Sign Agreements for Low-Carbon Ammonia Marine Transport to Japan

NYK Bulkship (Asia) Pte. Ltd., a Singapore-based subsidiary of the NYK Group, has signed two Heads of Agreements with JERA Co., Inc. for time-charter contracts covering two ammonia carriers. The agreements outline plans to transport low-carbon ammonia produced at JERA’s Blue Point Project in Louisiana, United States, to JERA’s Hekinan Thermal Power Station in Aichi Prefecture, Japan.

The project is expected to result in the first commercial shipment of fuel ammonia to Japan.

Scope of the agreements

Under the agreements, NYK Group and JERA will work toward establishing regular marine transport of low-carbon ammonia between the U.S. and Japan. The cargo will be supplied from JERA’s Blue Point Project and delivered to the Hekinan Thermal Power Station, where ammonia is being positioned as part of future fuel diversification efforts.

The two agreements each cover a dedicated ammonia carrier under time charter.

Ammonia’s role in energy transition

Ammonia is primarily used today in fertilizer and chemical production but is increasingly being considered as a clean energy option due to its ability to combust without emitting carbon dioxide. In addition to power generation, ammonia is being evaluated for use as a marine fuel and as a hydrogen carrier, with demand expected to grow as decarbonisation efforts expand.

Collaboration and maritime expertise

NYK Group and JERA have been working together to assess the safe transport of fuel ammonia using large vessels. According to the companies, the latest agreements are intended to accelerate commercialization and support the development of a stable supply chain for low-carbon ammonia.

The NYK Group has experience in the maritime transport of ammonia, including vessel operations, safety management, and cargo handling. The group has stated:

“We continue to advance initiatives to build a value chain for next-generation fuels, including ammonia, through marine transportation.”

Key facts

• Companies: NYK Group (via NYK Bulkship (Asia) Pte. Ltd.) and JERA Co., Inc.
• Agreements: Two Heads of Agreements for time-chartered ammonia carriers
• Cargo: Low-carbon (fuel) ammonia
• Route: Louisiana, U.S. to Hekinan, Aichi Prefecture, Japan
• Significance: Expected first commercial shipment of fuel ammonia to Japan