To facilitate zero-emission thermal power generation in Japan, Yara International ASA and JERA Co., Inc. have signed a Memorandum of Understanding to collaborate on the production, distribution, and supply chain growth of blue and green ammonia.
As part of its efforts to reduce CO2 emissions and achieve carbon neutrality by 2050, Japan recently announced plans to incorporate ammonia into the fuel mix for thermal power generation. The government plans to import 3 million tonnes of ammonia by 2030 as part of its Green Growth Strategy.
“This ground-breaking collaboration aims to decarbonize JERA’s power production and provide Yara with a footprint in the strategically important Japanese market. Building blue and green ammonia value chains is critical to enabling the hydrogen economy, and collaborating with a key player like JERA marks a milestone in leveraging Yara’s global capabilities,” says Svein Tore Holsether, President and Chief Executive Officer of Yara.
JERA Corporate Vice President Yukio Kani says: “We are pleased to conclude this MOU with Yara, a leading global ammonia producer, which shares our aspiration to develop a clean ammonia value chain. We believe that this cross-sector collaboration will not only expand business opportunities for both companies but also accelerate the transition to a decarbonized society.”
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 carbon free by using hydrogen sourced from renewable energy as feedstock. The term clean ammonia comprises both blue and green ammonia.
Under the MoU, Yara and JERA are targeting collaboration in the following areas:
- Supply and development of new ammonia demand in Japan including power generation purpose
- Sequestration of already captured CO2 (CCS) at Yara’s ammonia plant in Pilbara, Australia, enabling the production and supply of blue ammonia to JERA
- New clean (blue and green) ammonia project development
- Optimization of ammonia logistics to Japan