Wedoany.com Report-Dec.26, JERA, Japan's largest power generation and energy company, is progressing with plans to import low-carbon ammonia produced at the Blue Point facility in Louisiana, USA, for use as fuel in Japanese power plants. This initiative, developed in collaboration with shipping companies NYK and Mitsui O.S.K. Lines (MOL), is positioned to become the first commercial-scale ammonia fuel import operation to Japan.

The companies have signed heads of agreements leading to the development of specialized very large gas carriers (VLGCs) designed for ammonia transport. MOL has concluded time charter contracts with JERA for two vessels, while NYK has also signed two time charter agreements with JERA. These contracts support the transportation of low-carbon ammonia from the Blue Point project to JERA's Hekinan Thermal Power Station in Aichi Prefecture and other industrial users.

The Blue Point project represents a joint venture between CF Industries Holdings (40% ownership), JERA (35%), and Mitsui & Co. (25%). The partners reached a final investment decision in April 2025. The facility, located in Ascension Parish, Louisiana, will be one of the world's largest ammonia production plants upon completion, with a nameplate capacity of approximately 1.4 million metric tons per year. It will utilize natural gas as feedstock combined with carbon capture and storage (CCS) technology to significantly reduce CO₂ emissions during production. The total estimated project cost is around $4 billion, with construction starting in 2025 and commercial operations targeted for 2029.

JERA will offtake a portion of the produced ammonia—approximately 500,000 metric tons annually—for supply to Japan, Europe, Asia, and other markets. The imported ammonia will serve as a lower-carbon alternative to coal in power generation, supporting Japan's efforts to transition its energy mix while maintaining reliable supply.

MOL and JERA have collaborated for several years on studies related to large-scale ammonia transportation. These efforts have focused on vessel design characteristics suitable for domestic power plants, required receiving infrastructure, and the development of end-to-end transport systems. The partners are also exploring the use of ammonia as a propulsion fuel for the carriers themselves.

NYK has partnered with JERA since December 2023 on ammonia shipping demonstrations. This included the use of the NYK vessel Berlian Ekuator for testing in 2024. MOL has additional agreements, including partnerships with CMB.TECH for ammonia-fitted and ammonia-ready chemical tankers scheduled for delivery in 2028 and 2029, as well as work on ammonia bunker vessels.

This comprehensive approach across production, transportation, and utilization forms a key part of establishing a reliable low-carbon ammonia value chain. The project aligns with broader goals to reduce emissions in power generation and industrial applications, while fostering international cooperation in clean energy solutions.