Japan: Green Energy Transition Consortium Explores Clean Ammonia Collaboration in Japan
A consortium consisting of Yara International, 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.
Oslo/Norway — Japan’s largest power generation company, Jera, and green ammonia producer Yara announced a collaboration to decarbonize power production in Japan in May 2021. Since then, the two companies have been actively exploring potential cooperation across the clean ammonia value chain to cultivate demand for clean ammonia in Japan. Under this framework, the companies have additionally agreed to collaboratively study the potential of ammonia bunkering business and distribution to the industrial sector in Japan. Expanding this collaboration to include Idemitsu Kosan brings an extensive distribution network for petroleum products, bunkering capabilities and import terminals.
As part of its measures to reach carbon neutrality by 2050, Japan targets three million tonnes of ammonia import for fuel by 2030 and 30 million tonnes by 2050. Ammonia does not emit carbon dioxide during combustion and is seen as an effective future energy source. Blue ammonia is derived from a carbon capture and storage process (CCS), while green ammonia is produced from renewable energy. The term clean ammonia comprises both blue and green ammonia.
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
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.