MITSUI O.S.K. Lines, NYK Line and Japanese power generation company Jera are launching a joint study on transporting ammonia as a fuel.
The two shipping companies signed a memorandum of understanding with Jera on 21 November.
NYK said the study will examine transportation of ammonia to a thermal power plant in Japan where the Jera plans to eventually use ammonia fuel for its commercial operations.
Jera expects the Hekinan power plant to begin commercial operation of large-volume, co-firing of ammonia later this decade.
Under the agreement, MOL and NYK plan to study the development of larger ammonia carriers which would be suitable for domestic thermal power plants and receiving stations.
“Larger transport vessels are needed to enable low-cost procurement of ammonia in the large volumes required fuel for power generation,” Jera said.
The MoU also covers research around systems capable of transporting and receiving ammonia fuel, operation of ammonia-fuelled propulsion systems for vessels, and rules for receiving the fuel.
“The establishment of a method for transporting ammonia as a fuel for power generation will create a supply chain for the Hekinan Thermal Power Plant that reaches from upstream fuel ammonia to power generation,” Jera said.
“If the development of large-volume ammonia carriers and the construction of a fuel ammonia supply chain are achieved, both would be world firsts.”
Jera said it plans to establish and expand the supply chain for green fuels, including ammonia, with partners such as MOL and NYK.
The power company said it plans to incorporate domestic utilities which contribute to the “safe and stable” supply of ammonia.
