Japan's MOL, JERA to Study Transportation of Ammonia Fuel

Japan's Mitsui O.S.K. Lines Ltd. (MOL) said on Monday it had signed a memorandum of understanding (MoU) with JERA, the country's biggest power generator, to study transporting ammonia for using it as a fuel. 

The study will include looking at ammonia shipments to JERA's Hekinan power station in the Aichi prefecture, which is scheduled to start commercial operations towards the end of the decade, MOL said in the statement. 

"With ammonia emerging as a next-generation clean energy source that does not emit carbon dioxide during combustion, large-scale demand for ammonia is expected in the future, particularly for co-firing and as a hydrogen carrier in coal-fired power plants," according to the statement. 

Through the MoU, MOL and JERA would study developing fuel-ammonia carriers suitable for domestic thermal power plants and receiving stations, the building of fuel ammonia transportation and receiving systems, and installing and operating propulsion engines that use ammonia as ship fuel. The companies will also work with relevant parties to foster regulations regarding ammonia fuel, MOL's statement added. 

(Reuters - Reporting by Emily Chow; Editing by Rashmi Aich)