MOL, NYK secure ammonia transport charters with JERA

Japanese power generator JERA has signed charter agreements with compatriot Mitsui O.S.K. Lines (MOL) and NYK Line to transport low-carbon ammonia.

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Under the agreements, MOL will charter two very large gas carriers (VLGCs) to transport low-carbon ammonia.

Separately, NYK Bulkship, a subsidiary of NYK Group, has signed heads of agreement for ammonia carriers under time-charter arrangements.

The ammonia will be produced at the JERA-invested Blue Point Complex in Louisiana, US, and shipped to JERA’s Hekinan Thermal Power Station in Hekinan City, Japan.

Ammonia is primarily used as a feedstock for fertilisers, but it is also gaining attention as a potential decarbonisation solution across multiple sectors, including shipping.

The agreements aim to establish a commercial-scale low-carbon ammonia value chain, MOL said.

“This initiative marks the beginning of Japan's first large-scale low-carbon ammonia transport project,” the Japanese transport company added.

By Aparupa Mazumder

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