Yara, JERA and Idemitsu Kosan explore clean ammonia bunkering and distribution collaboration in JapanSource: OMX
Oslo, 5 October 2021: Yara International ASA, a leading global ammonia player, JERA Co., Inc, Japan’s largest power generation company, and Idemitsu Kosan, one of Japan’s leading suppliers of petroleum products, 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.
JERA and 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, JERA and Yara 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.
“Leveraging the combined strengths of JERA, Idemitsu Kosan and Yara will enable the development of an end-to-end clean ammonia supply chain, which is critical for the decarbonization of Japan’s energy, shipping and industrial sectors,” says Magnus Krogh Ankarstrand, President Yara Clean Ammonia. “The collaboration with these key players will strengthen Yara’s position in the strategically important Japanese market.”
As part of its measures to reach carbon neutrality by 2050, Japan targets 3 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 - JERA, Yara International, and Idemitsu Kosan - 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.
JERA, which produces about 30% of Japan's electricity, is developing “zero-emission thermal power plants” that utilize clean ammonia as a fuel for power generation. Idemitsu is streamlining its operations by harnessing infrastructure formerly used in petroleum refining and developing an ammonia business. Yara is a global leader in ammonia production, logistics and trade. It has established a new unit, Yara Clean Ammonia, to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.
Josiane Kremer, Director External Communications
Mobile: (+47) 481 80 451
Yu Komatsu, Trade Director- Asia (Ammonia/Fertiliser)
Mobile: (+65) 9711 2354
Established in 2015 as an equal joint venture between two major Japanese electric companies (TEPCO Fuel & Power Incorporated and Chubu Electric Power Company), JERA is an energy company with global reach and strengths across the entire energy supply chain from participation in LNG upstream projects and fuel procurement through fuel transportation and power generation.
JERA’s mission is to provide cutting-edge solutions to the world's energy issues by offering to other countries energy supply models established in Japan through JERA’s global operations. Looking toward 2025, JERA focuses primarily on energy solutions in two areas: large-scale renewable energy centered on offshore wind power generation and LNG value chains. To further drive its existing initiatives and clarify its long-term vision, JERA established its "JERA Zero CO2 Emissions 2050" objective in October 2020 based on the development of renewable energy and zero-emission thermal power generation using ammonia and hydrogen.
JERA’s current global power generation capacity is approximately 80GW and its LNG transaction volume is approximately 40MTPA—among the largest in the world.
For further details: https://www.jera.co.jp/english/
About Idemitsu Kosan
Idemitsu Kosan Co.,Ltd. is one of Japan’s leading producers and suppliers of energy. Our global operations, spanning 67 business bases across 20 countries and regions outside of Japan, encompass fuel oils, lubricants, asphalt, oil and gas development, renewable energy, coal and low-carbon solutions, petrochemicals, electronic materials, and agri-bio products.
Founded in 1911, Idemitsu Group has for over a century provided the stable energy supply that is indispensable for industry and daily life. Under our corporate vision for 2030, titled “Your Reliable Partner for a Brighter Future”, we will tackle social challenges and work toward net-zero carbon emissions (Scope1+2) by 2050, while remaining focused on our social mission: To provide a stable supply of energy , where and when people need it.
For more information about Idemitsu Group, see:
For information on our corporate vision for 2030, see:
Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a planet respected, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara’s ambition is focused on growing a climate positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.
To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming, and work closely with partners throughout the food value chain to improve the efficiency and sustainability of food production. Through our focus on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy intensive industries.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. We operate an integrated business model with around 17,000 employees and operations in over 60 countries, with a proven track record of strong returns. In 2020, Yara reported revenues of USD 11.6 billion.
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