JERA charters VLGCs for Japan’s first low carbon ammonia value chain

JERA has signed time charter agreements with NYK Bulkship (Asia) and Mitsui O.S.K. Lines (MOL) for four fuel ammonia carriers to support Japan’s first commercial scale low carbon ammonia value chain from the US to Japan. Each owner will provide two Very Large Gas Carriers (VLGCs) under long term charter to JERA, with vessel completion scheduled for the first half of 2027 ahead of planned supply chain operations from around fiscal 2029.

The VLGCs, to be built by Kawasaki Heavy Industries, will have an overall length of about 229.90 m, breadth of 37.20 m, moulded depth of 21.90 m and moulded summer draft of 11.65 m, with tank capacity of roughly 87,000 m³. The dual fuel ships will be able to run on LPG or VLSFO. JERA said this marks the world’s first long term deployment of VLGC size carriers for ammonia transportation and is critical to procuring and transporting large volumes of low carbon ammonia at more competitive cost for power generation and other commercial and industrial uses.

The carriers will be used to transport low carbon ammonia produced at the Blue Point Project in Louisiana to Japan. JERA holds a 35% equity stake in Blue Point, which is shown targeting around 1.4 million tonnes per year of ammonia production, with about 0.5 million tonnes per year contracted FOB for shipment on the four chartered carriers. The ammonia is expected to be used at JERA’s Hekinan Thermal Power Station, one of Japan’s largest thermal plants, in commercial scale ammonia substitution combustion at a 20% heat value ratio, and to supply manufacturing industry customers, linking production, shipping and end use in a single low carbon value chain.

JERA described the agreements as securing the transportation component of the chain and “another important milestone” towards establishing Japan’s first commercial scale low carbon ammonia value chain, building on memorandums of understanding signed with NYK and MOL in November 2022. “These agreements with NYK and MOL represent a major milestone in JERA’s efforts to establish Japan’s first commercial scale low carbon ammonia value chain,” said Sr. Managing Executive Officer Irtiza Sayyed. “Together, 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 decarbonization goals.”

JERA said the project, including the shipping agreements, forms part of a Low Carbon Hydrogen and its Derivatives Supply Business Plan certified on 19 December 2025 under Japan’s Act on Promotion of Supply and Utilization of Low Carbon Hydrogen and its Derivatives (“the Hydrogen Society Promotion Act”).

The Japan Organization for Metals and Energy Security (JOGMEC) decided on 16 February 2026 to grant subsidies to the project. The company added that the charters support its JERA Zero CO₂ Emissions 2050 initiative, under which it aims to achieve net zero emissions across domestic and international operations by 2050, and said it will continue working with partners in Japan and overseas to develop and expand low carbon hydrogen and ammonia value chains.