Yara, JERA, and Idemitsu Kosan, have signed a Memorandum of Understanding to explore the establishment of a domestic clean ammonia distribution network and bunkering business, accelerating Japan’s green energy transition.
JERA and Yara announced a collaboration to decarbonize power production in Japan in May 2021. Since then, the two companies have been exploring potential cooperation across the clean ammonia value chain to cultivate demand for clean ammonia in Japan.
Under this framework, JERA and Yara have also agreed to study the potential of ammonia bunkering business and distribution to the industrial sector in Japan.
Leveraging the combined strengths of JERA, Idemitsu Kosan and Yara will enable the development of an end-to-end clean ammonia supply chain, which is critical for the decarbonization of Japan’s energy, shipping and industrial sectors
says Magnus Krogh Ankarstrand, President Yara Clean Ammonia.
As part of its measures to reach carbon neutrality by 2050, Japan targets 3 million tonnes of ammonia import for fuel by 2030 and 30 million tonnes by 2050.
The MoU stipulates that the three companies will apply their respective strengths to explore the possibility of cooperation in the following areas in order to expand the introduction of ammonia in Japan:
- Establishment of a domestic ammonia distribution network based at Idemitsu Kosan’s Tokuyama Complex (Shunan City, Yamaguchi Prefecture);
- Establishment of an ammonia bunkering business utilizing Tokuyama Complex and the cultivation of demand;
- Optimization of fuel ammonia shipping supply chain for domestic use.
Finally, the MoU is to discuss cooperation among major players in the power generation, agriculture, and oil refining industries. The collaboration will contribute to improving ammonia supply reliability in Japan and ensuring its economic efficiency.
