NYK–JERA deal locks capacity for Japan’s first low-carbon ammonia shipment

NYK will charter two gas carriers for the US-to-Japan energy supply chain route.

NYK Bulkship (Asia) Pte. Ltd. (NBAsia), a Singapore-based company within the NYK Group, has signed a time-charter contract with JERA Co., Inc. for two very large gas carriers (VLGCs) that are expected to carry Japan's first shipment of low-carbon fuel ammonia for power generation.

Under the agreement, the vessels will transport low-carbon ammonia produced in Louisiana, US to JERA's Hekinan Thermal Power Station in the Japanese Prefecture of Aichi.

Commercial operation of large-scale ammonia co-firing at a 20% heat value ratio is scheduled to begin around fiscal year 2029 at the power station, according to a NYK media statement.

The contract follows a memorandum of understanding signed by the two companies in 2022 and heads of agreements concluded in December 2025.

The vessels covered by the agreement will each have a cargo tank capacity of about 87,000 cubic metres.

They will be built at the Sakaide Works of Kawasaki Heavy Industries Ltd. and will operate on dual-fuel propulsion using liquefied petroleum gas (LPG) and very low sulphur fuel oil (VLSFO).

According to NYK, the group will handle the marine transportation of the ammonia and apply its experience in ammonia cargo operations, safety management, and cargo handling.

Under Japan's Hydrogen Society Promotion Act, low-carbon ammonia refers to ammonia that meets specified carbon dioxide emissions thresholds during production and contributes to reducing the country's emissions.

NYK said it will continue efforts to support the development of next-generation fuel supply chains, including the marine transportation of ammonia.