JERA to collaborate with YCA and CF Industries on ammonia

Japanese energy company JERA has signed two separate Memorandums of Understanding (MoUs) with Yara Clean Ammonia Norge (YCA), a subsidiary of Norway-based Yara International ASA, and US-based CF Industries Holdings for potential collaboration for the joint project development and sales and purchase of clean ammonia.

Under the MoUs, JERA agreed with YCA and CF Industries to jointly study the viability to collaborate in the following areas:

• The sales and purchase of clean ammonia for the 20% co-firing operations at the Hekinan Thermal Power Plant Unit 4 in Japan, which is targeted to commence in 2027. The required volume is expected to be up to 500,000 mtpa.

• The joint development of a 1 million plus mtpa blue ammonia project which both YCA and CF Industries said are considering developing in the US Gulf Coast.

Svein Tore Holsether, CEO of Yara International, stated: “I’m very pleased that Yara and JERA are signing a MoU for the joint project development, sales, and purchase of clean ammonia. Yara has the capacity to produce and ship clean ammonia all over the world and we are a reliable, safe, and long-term supplier. We are highly committed to this partnership and look forward to joining forces with JERA to drive the transformation to a net-zero world.”

Magnus Krogh Ankarstrand, President of YCA, said: “I’m happy to see that we’ve developed a close relationship with JERA since our first MoU in May 2021. Our collaboration has developed deeply, and I am proud that YCA has been selected as the reliable supplier to JERA’s first world-scale co-firing project in Hekinan, Japan. Both companies are committed to scaling up clean energy sources, and we are looking forward to partnering with JERA in developing blue ammonia production in the US Gulf.”

Yukio Kani, Corporate Vice President of JERA, noted: “We are pleased to work together with Yara on this significant journey towards decarbonising the industry, and I am confident that Yara will take an important role in establishing a new clean fuel ammonia value chain which JERA seeks, through its experience in the operation throughout the ammonia supply chain from the production to transportation and storage in the existing market.”

Tony Will, President and CEO of CF Industries, said they are pleased to continue to build their relationship with JERA.

“We look forward to helping JERA and Japan meet its clean ammonia requirements, which represent the first significant volume of what we believe will be substantial global demand for clean ammonia as a clean energy source.”

Kani expressed that JERA is pleased to work together with CF Industries as well, stating: ”I am confident that CF Industries’ reliable operational capabilities that formed its track record for safe and efficient production as the world’s largest ammonia producer will profoundly contribute to JERA’s structuring of the clean fuel ammonia value chain…”

He concluded: “JERA will continue its own efforts as well as take hands with our partners in pursuit of our endeavour to realize and accelerate not only the decarbonisation of the Japanese energy industry but also to solve the energy-related issues that the world is facing.”

JERA said it has concluded an ammonia co-firing pilot test and will begin a demonstration project during its fiscal year 2023 at its Hekinan power plant.

The execution of the MoUs is the result of the tender process for the procurement of clean ammonia which JERA commenced on 18 February 2022.

Through that process, JERA held discussions with various companies to compare and evaluate them to determine the potential partners with which it will cooperate in sourcing clean ammonia for the world’s commercial-scale ammonia co-firing operations.

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