JERA Advances Plans to Ship Ammonia Produced in Louisiana to Japan

Japan’s largest power generation and energy company, JERA, is advancing its plans to ship low-carbon ammonia from a production facility in Louisiana to Japan to fuel a power generation plant. The project, working with shipping companies NYK and Mitsui O.S.K., is expected to become the first commercial-scale effort to import ammonia fuel to Japan.

The companies announced that they have signed contracts which will lead to the development of very large gas carriers designed specifically for ammonia transport. Mitsui O.S. K. completed a time charter contract with JWERA that calls for two vessels. Similarly, JERA also signed two time charters with NYK.

It is the next step in JERA’s plans to develop the Blue Point ammonia production facility in Louisiana. The company, along with partners CF Industries and Mitsui & Co., completed the investment decision for the project earlier this year. The total project is projected to cost approximately $4 billion, with JERA holding a 35 percent interest and the offtake agreements.

Blue Point is expected to be the world’s largest ammonia production facility when it comes online in 2029. It will have a nameplate capacity of approximately 1.4 million tons produced using natural gas and carbon capture technology. JERA said in the spring that it expects to supply markets in Europe, Asia, and other regions with ammonia as a fuel.

MOL and JERA have been working together for the past three years on studies for the transportation of large quantities of ammonia. They note that it is currently limited to fertilizer and chemicals. Japan looks to end its imports of coal, replacing the power generation capacity with ammonia-fueled plants.

The study with MOL focused on developing the characteristics for large gas carriers suitable for the domestic power plants and the required receiving stations. They were looking to develop the transport and receiving system and said they were also planning to operate the vessels with ammonia as the propulsion fuel.

NYK signed an agreement with JERA in December 2023 to demonstrate ammonia shipping. The deal provided the NYK vessel Berlian Ekuator (35,500 dwt) for a demonstration test to be undertaken in 2024.

MOL has already partnered with CMB.TECH for the operation of six Chinese-built chemical tankers. Two of the vessels will be ammonia-fitted on delivery, and the other four will be built ammonia-ready. The ships are due for delivery in 2028 and 2029. Both NYK and MOL are also working on ammonia bunker vessels.