Yara International ASA, Oslo, and Japan’s largest power generation company, JERA Co. Inc., have signed a Memorandum of Understanding (MOU) to collaborate on the production, delivery, and supply chain development for blue and green ammonia to enable zero-emission thermal power generation in Japan.
Under the MOU, the two companies are targeting collaboration in the supply and development of new ammonia demand in Japan, including for power generation purposes, as well as the sequestration of already captured CO2(carbon capture and storage (CCS) at Yara’s ammonia plant in Pilbara, Western Australia, enabling the production and supply of blue ammonia to JERA.
Japan recently announced plans to introduce ammonia into the fuel mix for thermal power generation as part of its measures to cut CO2 emissions and reach carbon neutrality by 2050. As part of its Green Growth Strategy, the Japanese government targets ammonia imports of 3 million mt by 2030.
Collaboration under the MOU will also include new clean ammonia – blue and green – project development and the optimization of ammonia logistics in Japan.
The collaboration aims to decarbonize JERA’s power production and provide Yara with a footprint in the strategically important Japanese market, Yara International President and CEO Svein Tore Holsether said in a May 11 statement announcing the MOU.
JERA Corporate Vice President Yukio Kani said the cross-sector collaboration will not only expand business opportunities for both companies, but also accelerate the transition to a decarbonized society.
JERA produces about 30 percent of Japan’s electricity.