Clean ammonia bunkering and distribution in Japan
Byon October 06, 2021
Yara, JERA and Idemitsu Kosan will collaborate to establish a domestic clean ammonia bunkering business and distribution net in Japan. The distribution network and bunkering will be based at Idemitsu Kosan’s Tokuyama Industrial Complex, and builds on an existing partnership between Yara and JERA.
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.Yara’s official press release, 5 October 2021
Building on and evolving existing partnerships
In May, Yara and JERA announced they are teaming up to develop a clean ammonia supply chain between Australia and Japan. Blue and green ammonia produced at Yara’s Pilbara facility in Western Australia will be exported and used for co-combustion in JERA’s power generating facilities in Japan.
In June, Idemitsu Kosan announced it would be working with IHI Corporation to develop an ammonia supply chain at its Tokuyama Complex. As part of the agreement, conversion of petrochemical storage tanks and a co-combustion trial the Complex will begin next year.
This new announcement adds to the existing partnerships and helps clean ammonia progress in Japan in new, exciting ways:
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.Yara’s official press release, 5 October 2021