Yara International ASA, a leading global ammonia player and JERA Co., Inc, Japan’s largest power generation company, have signed a Memorandum of Understanding (MoU) to collaborate on the production, delivery, and supply chain development for blue and green ammonia, to enable zero-emission thermal power generation in Japan.
Japan recently announced plans to introduce ammonia into the fuel mix for thermal power generation, as part of its measures to cut CO2 emissions and reach carbon neutrality by 2050. As part of its Green Growth Strategy, the government targets ammonia imports of 3 million t by 2030.
“This ground-breaking collaboration aims to decarbonise JERA’s power production and provide Yara with a footprint in the strategically important Japanese market. Building blue and green ammonia value chains is critical to enabling the hydrogen economy, and collaborating with a key player like JERA marks a milestone in leveraging Yara’s global capabilities,” says Svein Tore Holsether, President and Chief Executive Officer of Yara.
JERA Corporate Vice President Yukio Kani says: “We are pleased to conclude this MoU with Yara, a leading global ammonia producer, which shares our aspiration to develop a clean ammonia value chain. We believe that this cross-sector collaboration will not only expand business opportunities for both companies but also accelerate the transition to a decarbonised society.”
Ammonia does not emit carbon dioxide during combustion and is seen as an effective future energy source. Blue ammonia is derived from a carbon capture and storage process (CCS), while green ammonia is produced carbon free by using hydrogen sourced from renewable energy as feedstock. The term clean ammonia comprises both blue and green ammonia.
Under the MoU, Yara and JERA are targeting collaboration in the following areas:
Supply and development of new ammonia demand in Japan including power generation purpose.
Sequestration of already captured CO2 (CCS) at Yara’s ammonia plant in Pilbara, Australia, enabling the production and supply of blue ammonia to JERA.
New clean (blue and green) ammonia project development.
Optimisation of ammonia logistics to Japan.
JERA is the largest power generation company in Japan, producing about 30% of Japan's electricity. The Tokyo-based company is committed to establishing green fuel supply chains to achieve zero CO2 emissions from its operations in Japan and overseas by 2050.
Yara is a world leader in ammonia, with long experience and leading positions within global ammonia production, logistics and trade. The Oslo-based company produces roughly 8.5 million tpy of ammonia. Yara employs a fleet of 11 ammonia carriers, including five fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe. Yara recently established a new Clean Ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer, and ammonia for industrial applications.
