Page 10 - AsiaElec Week 04 2023
P. 10

AsiaElec                                        AMMONIA                                              AsiaElec

       Japan looks West for help in





       setting up ammonia infrastructure






       Deals with Norwegian, US firms to help bring Japan up to speed with global ammonia industry


        JAPAN            LEADING Japanese energy firm JERA has agreed  long-term supplier. We are highly committed
                         a pair of MoUs (memoranda of understanding)  to this partnership and look forward to joining
                         with prominent Western companies known  forces with JERA to drive the transformation to
                         for their work in setting up ammonia-based  a net-zero world.”
                         infrastructure.                        Yara is currently the world’s largest distribu-
                           The deals, with Norway based Yara Clean  tor of ammonia products, with YCA operating
                         Ammonia Norge (YCA), a subsidiary of Yara  the world’s largest ammonia network consisting
                         International ASA, as well as CF Industries  of 12 ships and 18 ammonia terminals linked to
                         Holdings in the United States, will enable JERA  numerous production sites worldwide.
                         to work in sync with its overseas partners on   Ammonia products can be used as a fuel for
                         developing, purchasing and ultimately selling  cleaner, greener shipping in addition to serv-
                         clean ammonia.                        ing as a component in higher rates of food
                           Speaking after announcing the MoUs, cor-  production.
                         porate vice president of JERA Yukio Kani said   Specific points agreed in the signing of the
                         of the deal with Yara: “We are pleased to work  MoUs included the sale and purchase of ammo-
                         together with Yara on this significant journey  nia for use in firing the Hekinan thermal power
                         towards decarbonising the industry, and I am  plant Unit 4, south of Nagoya in central Japan, to
                         confident that Yara will take an important role  the tune of 20% of total capacity required.
                         in establishing a new clean fuel ammonia value   The plant is expected to go online sometime
                         chain which JERA seeks, through its experience  in 2027, although a specific date has yet to be
                         in the operation throughout the ammonia supply  released, with the total volume of ammonia tar-
                         chain from the production to transportation and  geted predicted to by around 500,000 tonnes per
                         storage in the existing market.”      year (tpy).
                           The initial tender put out by JERA was dated   Also agreed in the MoUs was the co-develop-
                         February 18, 2022, with the time from initial  ment of a blue ammonia project currently on the
                         tender to signing of the MoU seen by some as  drawing board but believed to include a final fig-
                         an indication of the speed at which interest  ure of around 1mn tpy. No final location has yet
                         in ammonia and hydrogen infrastructure is  been agreed on the site for this project, although
                         developing.                           sources indicate it will be based somewhere on
                           Addressing the separate MoU with CF  the US Gulf Coast.
                         Industries, Kani added: ”I am confident that   Tony Will, the serving president and CEO at
                         CF Industries’ reliable operational capabilities  CF Industries, was similarly pleased to sign the  We look forward
                         that formed its track record for safe and effi-  MoU with JERA: “We look forward to helping   to helping JERA
                         cient production as the world’s largest ammonia  JERA and Japan meet its clean ammonia require-
                         producer will profoundly contribute to JERA’s  ments, which represent the first significant vol-  and Japan
                         structuring of the clean fuel ammonia value  ume of what we believe will be substantial global
                         chain…”                               demand for clean ammonia as a clean energy  meet its clean
                           The JERA boss saw his enthusiasm mirrored  source” he said, before Kani wrapped up by say-
                         by Svein Tore Holsether, CEO of Yara Interna-  ing: “JERA will continue its own efforts as well   ammonia
                         tional: “I’m very pleased that Yara and JERA are  as take hands with our partners in pursuit of our   requirements.
                         signing a MoU for the joint project development,  endeavour to realise and accelerate not only the
                         sales and purchase of clean ammonia. Yara has  decarbonisation of the Japanese energy industry
                         the capacity to produce and ship clean ammonia  but also to solve the energy-related issues that the
                         all over the world and we are a reliable, safe and  world is facing.”™
















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