JERA closes in on clean ammonia fuel supply
By on January 26, 2023
As part of the ammonia fuel tender process launched last February, JERA has signed MoUs this week with two significant ammonia producers. The agreements potentially secure the supply of one million tonnes of clean ammonia fuel to Japan each year. The ammonia will be used in co-firing trials at the Hekinan coal-fired power plant, beginning in 2027.
CF Industries
CF Industries will potentially supply 500,000 tonnes per year of clean ammonia to Japan, beginning in 2027. As per the tender specifications, that clean ammonia will have a carbon intensity at least 60% lower than conventionally produced ammonia. The pair are working on options for a long-term offtake agreement, with the trials at Hekinan scheduled to run into the 2040s. As part of this deal, JERA is also exploring equity investment options in CF Industries’ planned greenfield ammonia production plant in Louisiana (complimenting electrolyser and CCS projects to begin decarbonising CF’s existing Donaldsonville production complex).
Our leading ammonia production network and disciplined investments in clean energy initiatives have positioned CF Industries at the forefront of clean ammonia supply. We look forward to helping JERA and Japan meet its clean ammonia requirements, which represent the first significant volume of what we believe will be substantial global demand for clean ammonia as a clean energy source.
CF Industries President & CEO Tony Will in his organisation’s official press release, 17 Jan 2023
Yara: potential production on the US Gulf Coast
Yara Clean Ammonia has also been nominated as a potential supplier for JERA, adding another 500,000 tonnes per year of clean ammonia fuel from 2027. The pair will explore various supply options, and collaborate to develop a new, “blue” ammonia production project on the US Gulf Coast (with a capacity of one million tonnes per year). The announcement follows an MoU signed between the two in May 2021 to explore a supply chain for the decarbonisation of Japan’s power generation sector, including the possibility of CCS ammonia production at Yara’s Pilbara plant in Australia.
Yara has the capacity to produce and ship clean ammonia all over the world and we are a reliable, safe and long-term supplier. We are highly committed to this partnership and look forward to joining forces with JERA to drive the transformation to a net-zero world.
Yara International CEO Svein Tore Holsether in his organisation’s official press release, 17 Jan 2023