Mitsui O.S.K. Lines, Ltd. (MOL) has signed two heads of agreements with JERA Co., Inc. (JERA) for a time charter contract covering two very large gas carriers (VLGCs) designed for ammonia transport.

Under the agreement, the vessels will transport low-carbon ammonia produced at JERA-invested Blue Point Complex in Louisiana, U.S., to JERA's Hekinan Thermal Power Station in Hekinan City, Aichi Prefecture.

MOL said this initiative marks the beginning of Japan's first large-scale low-carbon ammonia transport project.

Since November 2022, MOL has held ongoing discussions with JERA on collaboration in fuel ammonia transport.

The agreement builds upon those discussions and seeks to establish a commercial-scale low-carbon ammonia value chain.

Ammonia is mainly used as a raw material for fertilizers and chemicals, and is recognized as a next-generation clean energy source that emits no carbon dioxide during combustion.

It also has the potential to provide decarbonization solutions across various sectors, including use as fuel for power plants and ships, as well as serving as a hydrogen carrier.

With these applications, MOL noted that "substantial future demand is projected."

The MOL Group positions environmental strategy as a core pillar of its management plan, "BLUE ACTION 2035," and has set the goal of achieving net-zero greenhouse gas (GHG) emissions by 2050 under the "MOL Group Environmental Vision 2.2." 

The group aims to contribute to the realization of a decarbonized society by building a comprehensive ammonia value chain. This entails actively participating in its development-where large-scale future demand is expected through adoption as a fuel-while at the same time further enhancing its expertise in the safe, reliable transport of ammonia.

MOL said it will expand its diverse social infrastructure businesses, technologies, and services centered on marine transport.

Ammonia is a highly efficient medium for transporting hydrogen in large quantities and its use has great potential to contribute to the realization of a carbon-neutral society.