Japan – JERA to Seek 500,000 T of Fuel Ammonia a Year Through Global Auction

Japan – JERA to seek 500,000 T of fuel ammonia a year through global auction.

In an effort to create a global supply chain in ammonia, JERA has sent a request for proposals to more than 30 companies, seeking a long-term contract from the 2027 financial year starting in April 2027 to sometime in 2040s, it said in a statement.

Ammonia is used for fertiliser and industrial materials, but is also seen as a future energy source, along with hydrogen. It does not emit carbon dioxide when burned, although it creates emissions if it is made with fossil fuel.

Last year, JERA and IHI Corp began to use small volumes of ammonia along with coal at JERA’s Hekinan coal-fired power station in central Japan as part of a demonstration project to reduce the facility’s emissions of CO2.

JERA aims to switch 20% of the fuel at No.4 unit to ammonia by the late 2020s.

JERA said:

Given the steady progress of the demonstration project, we have decided to consider fuel ammonia suppliers in parallel and conduct an international auction.

JERA plans to select multiple companies by around May after evaluating proposals from the potential suppliers.

Japan is targeting growing its fuel ammonia demand to 3 million tonnes a year by 2030 from zero now and to create a new supply chain of the fuel in a bid to cut CO2 emissions and combat climate change. Thanks for staying up to date with Hydrogen Central.

JERA aims to use a 20% ammonia fuel mix at all its coal-fired power plants by 2035, and to develop technology to use 100% ammonia in 2040s.

To make a large global supply chain of ammonia as fuel, Japanese firms are already collaborating with companies in Saudi Arabia, Australia, Norway and Asia, while promoting use of ammonia in other sectors and other countries.

Japan’s JERA to seek 500,000 T of fuel ammonia a year through global auction, February 17, 2022