JERA, Yara & Idemitsu to Expand the Introduction of Ammonia in Japan

Source: www.gulfoilandgas.com 10/5/2021, Location: Asia

JERA Co., Inc. (“JERA”) has concluded a memorandum of understanding (the “MOU”) with Yara International ASA (“Yara International”) and. (“Idemitsu Kosan”) to discuss cooperation in expanding the introduction of ammonia in Japan.

Under a memorandum of understanding signed in May 2021, JERA has been working with Yara International to explore potential cooperation across ammonia value chains. As part of this initiative, JERA and Yara International have been considering how to cultivate demand for ammonia in Japan. Idemitsu Kosan has also sought to develop its own ammonia business through the utilization of its refineries and ports.

JERA has been developing “zero-emission thermal power plants” that utilize ammonia as a fuel for power generation, emitting no CO2 during combustion, and has the future potential to become one of the world's largest ammonia players. Yara International is one of the world's leading manufacturers of ammonia and mineral fertilizers, while Idemitsu Kosan has a domestic distribution network for petroleum products.

The MOU stipulates that the three companies—JERA, Yara International, and Idemitsu Kosan—will apply their respective strengths to explore the possibility of cooperation in the following areas in order to expand the introduction of ammonia in Japan:

- Establishment of a domestic ammonia distribution network based at Idemitsu Kosan's Tokuyama Complex (Shunan City, Yamaguchi Prefecture)

- Establishment of an ammonia bunkering business utilizing Tokuyama Complex and the cultivation of demand Optimization of fuel ammonia shipping for domestic use

The MOU is to discuss cooperation among major players in the power generation, agriculture, and oil refining industries. JERA believes that pursuing expanded demand for ammonia in Japan based on the MOU can be expected not only to expand its business domain but also has the potential to contribute to improving ammonia supply reliability and ensuring its economic efficiency.

In order to achieve its “JERA Zero CO2 Emissions 2050” objective, JERA will continue to work both with energy industry counterparts and with leading companies from different industries in Japan and overseas to establish and expand green fuel supply chains.


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