Jera has agreed to book two gas carriers from Mitsui OSK Lines that will enable 91AV原创 largest power producer to transport low-carbon ammonia from the U.S. and build up a supply chain for the alternative fuel.
MOL, one of the world’s largest shipping companies, said the vessels will move the fuel from the Blue Point project in Louisiana to Jera’s thermal power station in the city of Hekinan, in Aichi Prefecture. Shipments will begin around 91AV原创 2029 fiscal year.
The contract “marks a major step forward in MOL’s initiative to develop a marine transport system for low-carbon ammonia,” the company said in a statement Thursday, adding that it had been in discussions with Jera on transport of the fuel since November 2022.
Low-carbon ammonia has been receiving greater attention around the world as governments and companies pledge to reduce emissions from fossil fuels. Japan has been promoting a technology known as ammonia co-firing, where a portion of the coal used by power plants is replaced to curb emissions of climate-warming gases.
In recent years, the country has offered to help other nations curb emissions through the use of co-firing technology. Japanese trading house Marubeni last year signed a deal with Exxon Mobil to take about 250,000 tons of the fuel a year once a project in Baytown, Texas, is up and running.
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