Japanese shipping group Mitsui OSK Lines (MOL) has signed two heads of agreements with energy company JERA for the time charter of two very large gas carriers (VLGC) dedicated to ammonia transport.
These vessels will transport “low-carbon” ammonia from the Blue Point Complex in Louisiana to the Hekinan Thermal Power Station in Aichi Prefecture.
MOL noted that this project represents Japan's first initiative for large-scale, “low-carbon” ammonia transport.
The agreement follows discussions between the two companies that began in November 2022 regarding collaboration in the fuel ammonia sector. The project aims to establish a commercial-scale value chain for “low-carbon” ammonia.
According to MOL, ammonia is projected to see significant demand as a fuel for power plants, ships, and as a hydrogen carrier.
In October, MOL entered into a separate memorandum of understanding (MOU) with Australian companies NH3 Clean Energy and Oceania Marine Energy regarding the development of clean ammonia bunkering operations in the Pilbara region of Western Australia.