NYK Group Signs Time-Charter Contract with JERA for Low-Carbon Ammonia Transportation
Chennai:
Port Wings News Network:
NYK Bulkship (Asia) Pte. Ltd., a Singapore-based company of the NYK Group, has concluded a time-charter contract with JERA Co., Inc. for two very large gas carriers (VLGCs) from NBAsia to JERA.
According to a media statement, the Contract follows continued discussions and evaluations conducted under a memorandum of understanding signed in 2022 and heads of agreements reached in December 2025.
The two VLGCs covered by the Contract are expected to transport low‑carbon ammonia (Under Japan’s Hydrogen Society Promotion Act, ammonia that meets a specified CO₂ emissions threshold during production and contributes to reducing Japan’s CO₂ emissions is defined as low-carbon ammonia) produced in the U.S. state of Louisiana to JERA’s Hekinan Thermal Power Station (Hekinan City, Aichi Prefecture).
At the power station, commercial operation of large-scale ammonia substitution combustion with 20% heat value ratio is scheduled to commence around fiscal year 2029. This project is expected to mark the first shipment of low‑carbon fuel ammonia for power generation to Japan.
Beyond its existing applications in fertilizers and chemicals, ammonia is emerging as a next-generation clean energy source, especially valued for its carbon-free combustion. It is expected to be used not only as fuel for power generation but also in various applications, including marine fuel.
The NYK Group has accumulated extensive expertise in the fields of operation, safety management, and cargo handling for the maritime transport of ammonia. We will ensure the safe and reliable transportation of fuel ammonia to the Hekinan Thermal Power Station, while continuing to advance initiatives to build a value chain for next-generation fuels, including ammonia, through marine transportation.
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