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31 min ago 2 min read
Japanese energy company Jera has taken another step towards establishing what it claims to be Japan’s first commercial-scale low-carbon ammonia value chain, securing four very large gas carrier vessels (VLGCs) to transport ammonia from the US Gulf Coast to Japan.
Under time charter agreements, Asian-based shipping companies NYK Bulkship (NYK) and Mitsui OSK Lines (MOL) will each supply two ammonia carriers, giving Jera dedicated shipping capacity for low-carbon ammonia imports from the Blue Point project in Louisiana.
The carriers will transport low-carbon ammonia produced at the 1.4 million tonnes per annum (mtpa) Blue Point plant to Jera’s Hekinan thermal power station to support commercial-scale ammonia substitution combustion.
JERA said the project represents the world’s first long-term deployment of VLGC carriers for ammonia transportation and a key step towards establishing a commercial low-carbon ammonia supply chain.
The agreements build on memorandums of understanding signed with NYK and MOL in November 2022 and support the planned start-up of the Blue Point project in 2029.
Once Blue Point begins production in 2029, Jera and global trading firm Mitsui are expected to offtake ammonia volumes proportional to their respective 35% and 25% equity stakes in the project.
Irtiza Sayyed, Senior Managing Executive Officer at Jera, said, “We are laying the foundation for a commercially viable low-carbon ammonia supply chain which connects production, transportation, and end use; contributing to Japan’s decarbonisation goals.”
The announcement comes as Japan seeks to accelerate the deployment of low-carbon hydrogen and ammonia to decarbonise hard-to-abate sectors and reduce emissions from thermal power generation.
The country is targeting a 46% reduction in greenhouse gas emissions by 2030, compared to 2013 levels.
In January 2026, Jera and Mitsui were as low-carbon hydrogen suppliers by the Ministry of Economy, Trade, and Industry (METI) ahead of Blue Point’s commercial operations.
