NYK Signs MoU with JERA for Cooperation in Transporting Fuel Ammonia

Joint Study of Optimal Logistics for Realization of Carbon Neutral Society

Nov. 21, 2022

On November 21, NYK and JERA Co., Inc. signed a memorandum of understanding (MoU) to study the transportation of fuel ammonia. The study will include examining the transport of fuel ammonia to the Hekinan Thermal Power Plant, where JERA aims to begin using fuel ammonia in commercial operations in the late 2020s. In order to procure fuel ammonia in large volume for power generation at a lower cost, it is necessary to increase the size of ships for transportation. The MoU provides for the two companies to jointly study the development of enlarged fuel ammonia carriers and the establishment of a safe transportation system. Specifically, the MoU stipulates that the following items will be studied:

• Development of fuel ammonia carriers suitable for domestic thermal power plants and receiving terminals
• Establishment of a system for transporting and receiving fuel ammonia
• Implementation and operation of ammonia-fueled propulsion systems for vessels
• Working with related parties to formulate rules for the reception of fuel ammonia




Since 2021, NYK has had a long-term GHG reduction target of net-zero emissions by 2050 for its oceangoing shipping business, and the company is working to establish a value chain for fuel ammonia, which does not emit carbon dioxide (CO2) when combusted. In establishing a new value chain ahead of the rest of the world, the standardization of carriers and the formation of rules such as laws and regulations are indispensable to realize large-scale transportation of fuel ammonia.

For the standardization of carriers, NYK will utilize its in-house resources, including its Project Engineering Team, to study and develop the most appropriate hull design from the concept stage.

As for the formation of rules such as laws and regulations, NYK will promote an approach to related parties based on the knowledge obtained through the development and social implementation of the company's ammonia-fueled ammonia gas carriers (AFAGC) and ammonia-fueled tugboats. The development of the AFAGC and the ammonia-fueled tugboat were both selected as recipients of the Green Innovation Fund Project* of the New Energy and Industrial Technology Development Organization (NEDO).

On February 3, 2021, NYK released the "NYK Group ESG Story," which aims to further integrate ESG into the company's management strategy and promotes activities that contribute to the achievement of the SDGs through business activities. On March 24, 2022, NYK released the updated "NYK Group ESG Story 2022," which introduces initiatives for integrating ESG into the Group's management strategies set forth in the "NYK Group ESG Story" and provides a partial explanation of the Group's sustainable growth strategy from a long-term perspective.


Image of AFAGC.   Image by NYK.

In addition, NYK has launch its new "NYK GREEN EARTH" brand to emphasize NYK's ESG efforts to create new value initiatives for low carbon and decarbonization through green businesses such as the development of next-generation fuels, including ammonia and hydrogen. The NYK Group will encourage new value creation as a sustainable solution provider in order to strongly promote ESG management.

* Green Innovation Fund project
A 2 trillion yen fund created in NEDO to significantly accelerate current efforts such as structural transformation of the energy and industrial sector and innovation through bold investment toward carbon neutrality by 2050. The fund provides continuous support from R&D and demonstration to social implementation for up to 10 years for companies that share ambitious and concrete goals with the public and private sectors and tackle them as management issues. NEDO provides support in 14 priority areas for which action plans are being formulated in the green growth strategy.

Overview of JERA Co., Inc.
Headquarters: Tokyo, Japan
President : Satoshi Onoda
Website: https://www.jera.co.jp/english/

NYK Group, press release