Japanese energy company Jera has signed time charter agreements with NYK Bulkship and Mitsui OSK Lines for four very large gas carrier vessels to transport low-carbon ammonia from the Blue Point project in Louisiana to Japan. The ammonia will be used at Jera's Hekinan thermal power station for commercial-scale ammonia substitution combustion, aiming to reduce emissions from coal-fired power generation. Blue Point is expected to start production in 2029, with Jera and Mitsui offtaking ammonia proportional to their 35% and 25% equity stakes. This is part of Japan's broader push to decarbonize hard-to-abate sectors, targeting a 46% reduction in greenhouse gas emissions by 2030 compared to 2013 levels. The project represents the first long-term deployment of VLGC carriers for ammonia transportation, building a supply chain from production to end use.
