JERA Signs Charters with MOL and NYK to Import US Ammonia to Japan
Japan's largest power generation company, JERA, has finalized charter agreements with Mitsui O.S.K. Lines (MOL) and NYK for the charter of four new gas carriers that will be dedicated to importing ammonia produced in Louisiana as a fuel component at Japan’s largest power generation station. Expected to be in service by 2029, this project would likely mark the first shipment of low-carbon ammonia as a fuel for power generation in Japan.
The companies launched projects beginning in late 2022 to study ammonia transportation. NYK reported that in order to procure large volumes of ammonia at a lower cost to serve as a fuel required increasing the size of the ships. The projects sought to establish the systems for transporting large quantities of ammonia as well as the process for receiving the ammonia. They entered into memorandums of understanding in late 2025, laying the groundwork for the project.
NYK and MOL will each build two vessels based on the design developed in the project. Each will measure approximately 230 meters (750 feet) with a tank capacity of 87,000 cbm. MOL reports it will build two vessels at Kawasaki Heavy Industries with delivery scheduled for the first half of 2027. NYK will build its two vessels at Kawasaki Heavy Industries’ Sakaide Works, and they will be able to operate on LPG or Very Low Sulfur Fuel Oil (VLSFO).
The project is the latest example of an emerging segment in shipping dedicated to the transport of ammonia. In addition to its potential as a fuel to decarbonize heavy industry, it is the best carrier for hydrogen.
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JERA is planning to convert its power plants to use or co-fire with ammonia. These four ships will supply ammonia to the Hekinan Thermal Power Plant located on Japan’s main island, Honshu, approximately 20 miles north of Nagoya City. It is the largest coal-fired power station in Japan with a maximum output of 4100 MW.
The ammonia will be produced in Louisiana at the Blue Point project. JERA is an investor along with CF Industries and Mitsui & Co. The plan calls for building the world’s largest ammonia production plant, which will go into service by 2029. CF Industries, which is leading the project, reports it will have a nameplate production capacity of 1.4 million metric tons. Projected to cost $4 billion, it will be an autothermal reforming (ATR) ammonia production facility with a carbon dioxide (CO2) dehydration and compression unit at the site to prepare captured CO2 for transportation and sequestration.