Japan’s Jera pens ammonia deal with NYK and MOL

Japan’s LNG trader and power generation firm, Jera, has signed memorandums of understanding with compatriot shipping giants NYK and MOL to cooperate in transporting ammonia for the coal-fueled Hekinan thermal power station.

Jera is moving forward with plans to supply larger volumes of ammonia to its Hekinan thermal power station.

The firm aims to begin using fuel ammonia in commercial operations in the late 2020s.

Earlier this year, the joint venture of Tepco and Chubu Electric said it would conduct an international competitive bidding round to buy up to 500,000 tons of ammonia per year.

In order to procure fuel ammonia in large volume for power generation at a lower cost, it is necessary to increase the size of ships for transportation.

In that regard, Jera joined forces with NYK and MOL to study ways to develop large-volume ammonia carriers and to establish safe transport systems, it said in a statement released on Monday.

Specifically, the partners would work on developing fuel-ammonia carriers suitable for domestic thermal power plants and receiving stations and building a fuel ammonia transportation and receiving system, Jera said.

They would also work on installing and operating propulsion engines that use ammonia as ship fuel and work with related parties to foster the formation of rules related to the reception of fuel ammonia, it said.

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