MOL and JERA sign deal for two VLGCs for ammonia transport

This initiative marks Japan’s first large-scale low-carbon ammonia transport project.

Mitsui O.S.K. Lines, Ltd. (MOL) has signed two heads of agreements with JERA Co., Inc. (JERA) for a time charter contract covering two very large gas carriers (VLGCs) designed for ammonia transport.

In a statement, MOL said that the vessels will transport low-carbon ammonia produced at JERA-invested Blue Point Complex in Louisiana, US, to JERA's Hekinan Thermal Power Station in Hekinan City, Aichi Prefecture.

This initiative marks the beginning of Japan's first large-scale low-carbon ammonia transport project.

Since November 2022, MOL has held ongoing discussions with JERA on collaboration in fuel ammonia transport. This agreement builds upon those discussions and seeks to establish a commercial-scale low-carbon ammonia value chain.

Ammonia is mainly used as a raw material for fertilisers and chemicals, and is recognised as a next-generation clean energy source that emits no carbon dioxide during combustion. It also has the potential to provide decarbonisation solutions across various sectors, including use as fuel for power plants and ships, as well as serving as a hydrogen carrier.

“Leveraging experience and expertise as one of the world's largest shipping companies, MOL will expand its diverse social infrastructure businesses, technologies, and services centred on marine transport,” the company said.