LONDON (ICIS)--Japanese energy giant JERA Co on Friday disclosed it has approached dozens of companies to secure a long-term clean (blue/green) ammonia supply deal for up to 500,000 tonnes/year from 2027.
The Tokyo-based major is seeking a partner/s for low/zero carbon material sourced on a FOB (free on board) basis for at least 13 years for use at its Hekinan Thermal Power Station in Aichi, central Honshu Island.
The firm has contacted more than 30 enterprises with a request for proposals as part of an international competitive bidding process.
"JERA will evaluate the proposals received and, after selecting multiple companies by around May of this year, move forward in discussing specifics with them," it said in a news release.
The enquiry calls for up to half a million tonnes/year of clean ammonia from 2027 to the 2040s, with the FOB basis suggesting JERA may charter its own ammonia carriers to import the product.
"JERA is working on a project to demonstrate the use of fuel ammonia at the Hekinan Thermal Power Station, aiming to switch 20% of the fuel at Unit 4 to ammonia by the late 2020s," the statement continued.
"Given the steady progress of this demonstration project, JERA has decided to consider fuel ammonia suppliers in parallel, and to conduct an international competitive bid."
JERA has pledged to cut CO2 emissions from domestic and overseas businesses to zero by 2050, to promote the adoption of greener fuels, and to pursue thermal power that does not emit CO2 during power generation.
Japanese business and authorities are spearheading the drive towards a switch to low/zero carbon ammonia, with Saudi oil and gas major Aramco sending the world's first ever blue ammonia shipment to Japan in 2020.
Last year, Abu Dhabi-based ADNOC and Fertgilobe delivered small amounts of blue ammonia to several buyers, with that flow expected to strengthen as more projects come online in Asia Pacific over the coming years.