Japan-headed energy utility JERA Co., Inc. (JERA) has announced that it has concluded a Memorandum of Understanding (MoU) with global ammonia and fertilizers major Norway-headed Yara International ASA (Yara), related to cooperation in the ammonia value chain business, including the possible development of blue ammonia production.
Ammonia is primarily used as agricultural fertilizer. Because ammonia does not emit carbon dioxide (CO2) when burned, against the backdrop of the global transition to a decarbonized society, it is also a promising clean fuel candidate for use in power generation.
Japan recently announced plans to introduce ammonia into the fuel mix for thermal power generation, as part of its measures to cut carbon dioxide (CO2) emissions and reach carbon neutrality by 2050.
As part of its Green Growth Strategy, the government targets ammonia imports of 3 million tonnes by 2030. In addition, blue ammonia produced using CO2 offset technology, and green ammonia produced using renewable energy, is needed to reduce carbon emissions through the entire ammonia life cycle.
Under the MoU, JERA and Yara have agreed to pursue potential collaboration in the following areas:
- Improvements to the Yara Pilbara Fertilizer plant in Australia to enable the production of blue ammonia;
- Joint development of new blue and green ammonia production projects;
- Optimization of ammonia shipping; and
- Supply and development of new demand for ammonia in Japan including in power generation
Yara is one of the world’s largest producers of ammonia, a global leader in ammonia sales and shipping, and actively working to decarbonize the ammonia production process.
This ground-breaking collaboration aims to decarbonize JERA’s power production and provide Yara with a footprint in the strategically important Japanese market. Building blue and green ammonia value chains are critical to enabling the hydrogen economy, and collaborating with a key player like JERA marks a milestone in leveraging Yara’s global capabilities, said Svein Tore Holsether, President and CEO, Yara.
JERA expects its collaboration with Yara to contribute to the stable supply of ammonia for power generation and to promote understanding of the supply chain.
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 decarbonized society, said Yukio Kani, Corporate VP, JERA.
In order to achieve its “JERA Zero CO2 Emissions 2050” objective, JERA will continue to work not only with energy industry counterparts but also with other leading companies in different industries in Japan and overseas to establish and expand green fuel supply chains.
