Norwegian ammonia and fertilizer manufacturer Yara International has joined forces with Japan’s power generation major JERA and oil company Idemitsu Kosan to explore the establishment of a domestic clean ammonia distribution network and bunkering business. The term clean ammonia comprises both blue and green ammonia. Blue ammonia is derived from a carbon capture and storage process (CCS), while green ammonia is produced from renewable energy.
Since May this year, JERA and Yara have been exploring potential cooperation across the clean ammonia value chain, including ammonia bunkering business and distribution to the industrial sector in Japan. This collaboration has now been expanded to include Idemitsu, with an extensive distribution network for petroleum products, bunkering capabilities and import terminals.
The partnership will look into the possibility of establishing a domestic ammonia distribution network based at Idemitsu Kosan’s Tokuyama Complex which would be utilised by a joint ammonia bunkering business as well as optimisation of fuel ammonia shipping supply chain for domestic use.
“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 decarbonisation of Japan’s energy, shipping and industrial sectors,” said 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 3m tonnes of ammonia imports for fuel by 2030 and 30m tonnes by 2050. Yara produces roughly 8.5m tonnes of ammonia annually. The Oslo-based company employs a fleet of 11 ammonia carriers, including five fully owned ships, and owns 18 marine ammonia terminals.