MOL and JERA Sign Strategic Agreement to Charter Ammonia Carriers for Japan’s First Large-Scale Low-Carbon Transport

Tokyo Mitsui O.S.K. Lines, Ltd. (MOL) has entered into two Heads of Agreement with JERA Co., Inc. to charter two very large gas carriers (VLGCs) that are specifically designed to carry ammonia. The ships will move low-carbon ammonia produced through the JERA-supported Blue Point Complex in Louisiana, USA, to the JERA-owned Hekinan Thermal Power Station in the Aichi Prefecture, which will become the first commercial scale low-carbon ammonia transportation program in Japan.

The agreement follows the continuous deliberation between MOL and JERA since November 2022, with an aim to come up with fuel ammonia transportation solutions. This recent development is a significant breakthrough towards constructing a complete low-carbon ammonia value chain, including production to final use.

Ammonia, which finds extensive application in fertilizer and chemical production is increasingly being considered a clean energy source of the future since this gas leaves no carbon dioxide upon burning. It is also important in decarbonization, in power generation, marine fuel, and also in creating efficient hydrogen carrier. Due to the accelerating process of global energy transition, the low-carbon ammonia demand is projected to increase substantially.

One of the key pillars of the long-term management strategy of MOL, BLUE ACTION 2035, is environmental sustainability. The company has set a goal of net-zero emission of greenhouse gases by the year 2050 under its MOL Group Environmental Vision 2.2. Through the active involvement in the process of creating an ammonia value chain, MOL strives to contribute to the process of global decarbonization along with enhancing its competence in the field of safe and reliable transportation of ammonia.

MOL is one of the most successful shipping companies in the world and has intentions to develop its marine-oriented social infrastructure, technologies, and logistics services. The group is able to address the changing needs of customers through innovation and sustainable shipping solutions, and help on a low-carbon future, which is beneficial in securing energy and protecting the environment on a global scale.

This MOL-JERA partnership should contribute significantly to the development of a clean energy infrastructure, maritime technological innovations, and the environmentally friendly shipping in Japan and elsewhere.