Yara Clean Ammonia (YCA) signs Memorandum of Understanding (MOU) with Japanese company JERA Co. Inc. to decarbonize coalfired powerplant and develop blue ammonia production in the US Gulf.
Yara Clean Ammonia has been successfully nominated as a potential supplier in JERA’s tender to supply up to 500 kilotons (kt) of clean ammonia to the Hekinan Thermal Power Plant Unit 4. This is JERA’s first commercial scale co-firing project.
“I’m very pleased that Yara and JERA are signing a MOU for the joint project development, sales, and purchase of clean ammonia. Yara has the capacity to produce and ship clean ammonia all over the world and we are a reliable, safe, and long-term supplier. We are highly committed to this partnership and look forward to joining forces with JERA to drive the transformation to a net-zero world”, says CEO of Yara International, Mr. Svein Tore Holsether.
The two companies also plan to collaborate on blue ammonia production in the US Gulf and to produce more than 1 million metric tons per annum (mtpa).
“I’m happy to see that we’ve developed a close relationship with JERA since our first MOU in May 2021. Our collaboration has developed deeply, and I am proud that Yara Clean Ammonia has been selected as the reliable supplier to JERA’s first world scale co-firing project in Hekinan, Japan. Both companies are committed to scaling up clean energy sources and we are looking forward to partner with JERA in developing blue ammonia production in the US Gulf”, says President of Yara Clean Ammonia, Mr. Magnus Krogh Ankarstrand.
In the MOU, Yara Clean Ammonia and JERA have agreed to jointly study the viability to collaborate in the following areas:
The sales and purchase of clean ammonia for the 20% co-firing operations at Hekinan Thermal Power Plant Unit 4, which is targeted to commence in 2027. The required volume is expected to be up to 500,000 mtpa.
The joint development of a 1 million plus mtpa blue ammonia project which YCA is considering developing in the US Gulf Coast.
“We are pleased to work together with Yara on this significant journey towards decarbonizing the industry, and I am confident that Yara will take an important role in establishing a new clean fuel ammonia value chain which JERA seeks, through its experience in the operation throughout the ammonia supply chain from the production to transportation and storage in the existing market. JERA will continue its own efforts as well as to take hands with our partners in pursuit of our endeavour to realize and accelerate not only the decarbonization of the Japanese energy industry but also to solve the energy-related issues that the world is facing”, says Corporate Vice President in JERA, Mr. Yukio Kani.