Japan's JERA Signs Charters for Four Ammonia Carriers, Targeting 2029 Operations

en.Wedoany.com Reported - JERA has formally signed time charter agreements for four vessels with NYK Bulkship and Mitsui O.S.K. Lines (MOL), which will transport low-carbon ammonia produced at the Blue Point project in Louisiana, USA. The ammonia is expected to be shipped to JERA's Hekinan Thermal Power Station from around 2029 for co-firing with coal.

NYK and MOL will each provide two Very Large Gas Carriers (VLGCs), marking the world's first long-term deployment of VLGC-class vessels for ammonia transportation. The formal contracts were signed following a framework agreement reached in December 2025, after the Japanese government provided contract-for-difference subsidies for importing carbon capture and storage (CCS)-based ammonia from the Blue Point project.

Irtiza Sayyed, Senior Managing Executive Officer of JERA, stated in the organization's official press release on June 18, 2026, that the agreements with NYK and MOL represent a significant milestone in establishing Japan's first commercial-scale low-carbon ammonia value chain. The collaboration is laying the foundation for a commercially viable low-carbon ammonia supply chain connecting production, transportation, and end-use.

NYK's two vessels come from the Sakaide Works built by Kawasaki Heavy Industries. These 229-meter-long, 87,000-cubic-meter ships are designated as dual-fuel (LPG/very low sulfur fuel oil). NYK's ammonia-fueled medium gas carriers are under construction, with a target delivery date of November 2026. These medium gas carriers will be chartered by Yara upon commissioning and will receive engine room safety certification from ClassNK, including independent engine control rooms to minimize crew exposure to ammonia-related equipment.