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    Jera, Yara form ammonia pact

Summary

Jera is Japan's largest power generation firm, while Yara is a leading global ammonia producer.

by: Joseph Murphy

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Jera, Yara form ammonia pact

Japan's largest power generation firm Jera and Norwegian ammonia producer Yara International have signed a memorandum of understanding (MoU) to work together in developing supply chains for blue and green ammonia, the companies said on May 11. The partnership may cover the construction of a blue ammonia production plant.

The MoU envisages the pair upgrading the Yara Pilbara fertiliser plant in Australia, enabling it to produce blue ammonia, developing other blue and green ammonia production sites, optimising ammonia shipping and supplying ammonia to Japan and creating demand for the fuel in the country, including in power generation.

Japan recently announced plans to introduce ammonia into the fuel mix in its power generation sector, as part of efforts to become a net-zero economy by 2050. This ammonia is expected to be supplied from overseas, with import volumes reaching 3mn metric tons by 2030.

"We believe that this cross-sector collaboration will not only expand business opportunities for both companies but also accelerate the transition to a decarbonised society,"Jera corporate vice president Yukio Kani said in a statement. "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."

"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," Yara CEO Svein Tore Holsether added. 

Jera accounts for around 30% of Japan's electricity generation. It announced its own pledge to become net-zero by 2050 in October last year. The company signed a MoU with Malaysia's Petronas to collaborate in low-carbon energy, including ammonia. Yara produces some 8.5mn metric tons/year of ammonia, and owns a fleet of 11 ammonia carriers and 18 marine ammonia terminals.