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NYK signs MoU with JERA for cooperation in Transporting Fuel Ammonia

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TOKYO : On November 21, NYK and JERA Co., Inc. signed a memorandum of understanding (MoU) to study the transportation of fuel ammonia. The study will include examining the transport of fuel ammonia to the Hekinan Thermal Power Plant, where JERA aims to begin using fuel ammonia in commercial operations in the late 2020s.

In order to procure fuel ammonia in large volume for power generation at a lower cost, it is necessary to increase the size of ships for transportation. The MoU provides for the two companies to jointly study the development of enlarged fuel ammonia carriers and the establishment of a safe transportation system. Specifically, the MoU stipulates that the following items will be studied:

  • Development of fuel ammonia carriers suitable for domestic thermal power plants and receiving terminals
  • Establishment of a system for transporting and receiving fuel ammonia
  • Implementation and operation of ammonia-fueled propulsion systems for vessels
  • Working with related parties to formulate rules for the reception of fuel ammonia

Since 2021, NYK has had a long-term GHG reduction target of net-zero emissions by 2050 for its oceangoing shipping business, and the company is working to establish a value chain for fuel ammonia, which does not emit carbon dioxide (CO2) when combusted. In establishing a new value chain ahead of the rest of the world, the standardization of carriers and the formation of rules such as laws and regulations are indispensable to realize large-scale transportation of fuel ammonia.

For the standardization of carriers, NYK will utilize its in-house resources, including its Project Engineering Team, to study and develop the most appropriate hull design from the concept stage.

As for the formation of rules such as laws and regulations, NYK will promote an approach to related parties based on the knowledge obtained through the development and social implementation of the company’s ammonia-fueled ammonia gas carriers (AFAGC) and ammonia-fueled tugboats. The development of the AFAGC and the ammonia-fueled tugboat were both selected as recipients of the Green Innovation Fund Project* of the New Energy and Industrial Technology Development Organization (NEDO).

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