Yara International ASA, JERA Co., and Idemitsu Kosan have signed a Memorandum of Understanding to explore the establishment of a clean ammonia distribution network and bunkering business in Japan.
In May, JERA and Yara announced a collaboration to decarbonise power production in Japan. Under the framework, JERA and Yara have additionally agreed to collaboratively study the potential of an ammonia bunkering business and distribution to the industrial sector in Japan. According to the partners, expanding the 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 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.’
Under the terms of the MoU, the companies will look to establish a domestic ammonia distribution network based at Idemitsu Kosan's Tokuyama Complex in Shunan City, and also establish an ammonia bunkering business utilising Tokuyama Complex and the cultivation of demand. The partners will also seek to optimise the ammonia fuel shipping supply chain for domestic use.
As part of its measures to reach carbon neutrality by 2050, Japan is targeting 3 million tonnes of ammonia import for fuel by 2030 and 30 million tonnes by 2050.