Japan’s LNG trader and power firm, Jera, has signed a heads of agreement with German energy firm Uniper to supply the latter with ammonia from the US.
Last year, the two firms entered into a memorandum of understanding on procurement and sale of LNG and ammonia from the US.
The two firms said at the time that they are considering joint optimization of their respective LNG portfolios for supply to Japan and Germany.
According to a statement by Jera issued on Tuesday, its unit Jera Americas has signed the non-binding heads of agreement with Uniper Global Commodities and US energy giant ConocoPhillips under which Uniper will buy hydrogen/ammonia produced in the US.
Jera said this agreement is the next step after signing of the memorandum in September 2022.
The Japanese firm and ConocoPhilips are working on a production facility in the US Gulf Coast that will produce hydrogen on a large scale and convert it into ammonia.
“We aim to start commercial production at the end of the 2020s at a plant with an initial production capacity of approximately 2 million tons per year and will accelerate the study of the basic design,” Jera said.
Uniper separately also plans the “Green Wilhelmshaven” project to produce and import hydrogen.
The state-owned firm already developed the Wilhelmshaven FSRU-based LNG import facility on behalf of the German government.
Germany’s first FSRU-based LNG import terminal received its first commercial cargo from the US in January this year.