Oslo, 11May 2021: Yara International ASA, a leading global ammonia playerand JERA Co., Inc, Japan's largest powergeneration company, have signed a Memorandum of Understanding to collaborate on the production,delivery and supply chain development for blue and green ammonia, to enable zero-emission thermal power generation in Japan.
Japan recently announced plans to introduce ammonia into the fuel mix for thermal power generation, as part of its measures to cut CO2 emissions and reach carbon neutrality by 2050. As part of its Green Growth Strategy, the government targets ammonia imports of 3 million tonnes by 2030.
"This ground-breaking collaboration aims to decarbonize JERA's power production and provide Yara with a footprint in the strategically important Japanese market. Building blue and green ammonia value chains is critical to enabling the hydrogen economy, and collaborating with a key player like JERA marks a milestone in leveraging Yara's global capabilities," says Svein Tore Holsether, President and Chief Executive Officer of Yara.
JERA Corporate Vice President Yukio Kani says: "We are pleased to conclude this MOU with Yara, a leading global ammonia producer, which shares our aspiration to develop a clean ammonia value chain. We believe that this cross-sector collaboration will not only expand business opportunities for both companies but also accelerate the transition to a decarbonized society."
Ammonia does not emit carbon dioxide during combustion and is seen as an effective future energy source. Blue ammonia is derived from a carbon capture and storage process (CCS), while green ammonia is produced carbon free by using hydrogen sourced from renewable energy as feedstock. The term clean ammonia comprises both blue and green ammonia.
Under the MoU, Yara and JERA are targeting collaboration in the following areas:
- Supply and development of new ammonia demand in Japan including power generation purpose
- Sequestration of already captured CO2 (CCS) at Yara's ammonia plant in Pilbara, Australia, enabling the production and supply of blue ammonia to JERA
- New clean (blue and green) ammonia project development
- Optimization of ammonia logistics to Japan
JERA is the largest power generation company in Japan, producing about 30% of Japan's electricity. The Tokyo-based company is committed to establishing green fuel supply chains to achieve zero CO2 emissions from its operations in Japan and overseas by 2050.
Yara is a world leader in ammonia, with long experience and leading positions within global ammonia production, logistics and trade. The Oslo-based company produces roughly 8.5 million tonnes of ammonia annually. Yara employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity - enabling it to produce and deliver ammonia across the globe. Yara recently established a new Clean Ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.
Thor Giæver, SVP Investor Relations
Josiane Kremer, Director External Communications
Established in 2015 as an equal joint venture between two major Japanese electric companies (TEPCO Fuel & Power Incorporated and Chubu Electric Power Company), JERA is an energy company with global reach and strengths across the entire energy supply chain from participation in LNG upstream projects and fuel procurement through fuel transportation and power generation.
JERA's mission is to provide cutting-edge solutions to the world's energy issues by offering to other countries energy supply models established in Japan through JERA's global operations. Looking toward 2025, JERA focuses primarily on energy solutions in two areas: the LNG value chain and large-scale renewable energy centered on offshore wind power generation. To further drive its existing initiatives and clarify its long-term vision, JERA established its "JERA Zero CO2 Emissions 2050" plan in October 2020 based on the development of zero-emission thermal power generation using ammonia and hydrogen.
JERA's current global power generation capacity is approximately 80GW and its LNG transaction volume is approximately 36MTPA-among the largest in the world.
For further details: https://www.jera.co.jp/english/
Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a planet respected, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara's ambition is focused on growing a climate positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.
To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming, and work closely with partners throughout the food value chain to improve the efficiency and sustainability of food production. Through our focus on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy intensive industries.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry's only global crop nutrition company. We operate an integrated business model with around 17,000 employees and operations in over 60 countries, with a proven track record of strong returns. In 2020, Yara reported revenues of USD 11.6 billion.www.yara.com
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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