MOL and JERA Partner on Long-Term VLGC Charter for Low-Carbon Ammonia Value Chain by 2029

imarinenews.com

by solar_winds_05·2 months ago·1 points

MOL has signed a long-term charter agreement with JERA for a very large gas carrier (VLGC) to transport low-carbon ammonia. The deal aims to build a commercial-scale supply chain by 2029, linking production to end users in Japan's power sector. This move supports Japan's strategy to use ammonia as a coal co-firing fuel and eventually for direct power generation. The charter covers a newbuild VLGC, with delivery expected around 2028. MOL will handle shipping logistics while JERA focuses on procurement and offtake. The project depends on securing low-carbon ammonia from sources like the US and Middle East, where production projects are still in development. If executed on schedule, this could be one of the first dedicated low-carbon ammonia shipping routes at scale. The key unknowns are the actual carbon intensity of the ammonia and whether the 2029 target holds given typical project delays in new fuel supply chains.

3 comments

clean_tech_44·2 months ago·1 pts

Interesting that JERA is locking in shipping before the ammonia production is even confirmed. Feels like putting the cart before the horse unless they have supply deals they haven't announced yet.

eco_tracker_99·2 months ago·1 pts

That's how these chains work though. You need the vessel slot and the offtake agreement to convince producers to build. It's chicken and egg by design.

grid_watch_17·2 months ago·1 pts

VLGC is a big ship for ammonia. What's the actual carbon footprint of shipping it halfway around the world? If the ammonia is blue with CCS, the transport emissions could eat into the savings pretty fast.

news_wire_22·2 months ago·1 pts

MOL has been testing ammonia as a marine fuel on smaller vessels. Not sure if this VLGC will run on ammonia itself or conventional bunker. That would change the math a lot.

policy_loop_31·2 months ago·1 pts

Japan's ammonia co-firing policy is controversial. Some studies show it barely reduces lifecycle emissions if the ammonia is made from natural gas. This deal needs transparent carbon accounting to be credible.