MOL and JERA agreed to charter ammonia carriers, enabling Japan鈥檚 first large-scale low-carbon ammonia transport and supporting decarbonized energy supply.
Mitsui O.S.K. Lines, Ltd. (MOL) has announced that it has entered into two Heads of Agreements with JERA Co., Inc. for the time charter of two very large gas carriers (VLGCs) specifically designed to transport ammonia. These agreements represent an important step toward the realization of Japan鈥檚 first commercial-scale, low-carbon ammonia transportation project. Under the proposed arrangements, the vessels will carry low-carbon ammonia produced at the Blue Point Complex in Louisiana, United States鈥攁n industrial facility in which JERA has invested鈥攖o JERA鈥檚 Hekinan Thermal Power Station, located in Hekinan City, Aichi Prefecture.
This initiative marks a significant milestone for Japan鈥檚 energy transition. By establishing a stable maritime transport route for low-carbon ammonia, MOL and JERA aim to support the early formation of a full-scale ammonia value chain that links production, international transport, and end use in power generation. Discussions between the two companies on cooperation in fuel ammonia transportation have been ongoing since November 2022, and the newly signed Heads of Agreements build on these earlier dialogues. The intent is to move beyond feasibility studies and toward a commercially viable supply chain capable of supporting Japan鈥檚 decarbonization ambitions.
Ammonia has traditionally been used as a key raw material in the manufacture of fertilizers and a wide range of chemical products. In recent years, however, it has gained increasing attention as a next-generation clean energy carrier. When used as a fuel, ammonia does not emit carbon dioxide during combustion, making it an attractive option for reducing greenhouse gas emissions. In addition to its potential role as a fuel for thermal power plants and marine vessels, ammonia is also viewed as an efficient carrier for hydrogen, further enhancing its strategic importance in a low-carbon energy system. As countries and industries intensify efforts to reduce emissions, demand for low-carbon ammonia is expected to grow substantially across multiple sectors.
Within this context, MOL has positioned environmental and sustainability initiatives as a central pillar of its long-term management strategy. Under its management plan, 鈥淏LUE ACTION 2035,鈥� the MOL Group has committed to addressing environmental challenges while maintaining competitiveness in global shipping and logistics. Furthermore, through its 鈥淢OL Group Environmental Vision 2.2,鈥� the company has set a clear objective of achieving net-zero greenhouse gas emissions by 2050. Developing and operating a robust ammonia value chain is seen as a key pathway toward achieving this goal.
By actively participating in large-scale ammonia transport projects, MOL seeks not only to support emerging demand for ammonia as a fuel, but also to strengthen its expertise in the safe and reliable handling of this substance. Ammonia transport requires advanced vessel design, strict safety standards, and highly trained crews鈥攁reas in which MOL already has extensive experience. The company plans to leverage this know-how to ensure stable, secure, and efficient maritime transport solutions as global demand for low-carbon fuels increases.
Drawing on its position as one of the world鈥檚 largest shipping companies, MOL will continue to expand its portfolio of social infrastructure businesses, technologies, and services centered on marine transportation. Through these efforts, the group aims to respond to the evolving needs of its customers while contributing to global decarbonization. Ultimately, MOL envisions itself as a global social infrastructure company that supports everyday life from the oceans, helps secure a sustainable and prosperous future, and delivers long-term value to all stakeholders.
