NYK Partners With Mitsui To Deliver Ammonia For Fuel Conversion Demonstration Test

A time charter agreement for the transportation of ammonia was recently finalised between Mitsui & Co. and the Japanese shipping company Nippon Yusen Kaisha (NYK). The deal, endorsed in October, names NYK’s Berlian Ekuator, the LPG carrier flying the flag of Panama, as the principalship for these shipments.

Ammonia Shipping — Image Credits: NYK Line

This collaboration will facilitate the transportation of fuel ammonia ahead of JERA Co.’s first-ever large-scale fuel conversion demonstration test.

The test is scheduled at JERA’s Hekinan Thermal Power Station, Unit 4. In fiscal 2023, JERA intends to demonstrate a 20% fuel substitution with ammonia, a first for the large commercial coal-fired power plant industry. Japan’s New Energy and Industrial Technology Development Organization (NEDO) provides funding for the project.

NYK highlights that this agreement will enable them to gain practical experience in handling ammonia and will aid in developing a marine transportation system to support the future growth of the fuel ammonia market, contributing to the global energy transition.

The demonstration project will run from June 2021 to March 2025. Developing cofiring ammonia technology will evaluate boiler absorbance of heat and adverse environmental features, such as exhaust gases during coal and ammonia combustion.

To enable the required supply for the demonstration test, Mitsui and JERA signed a sales and purchase agreement for ammonia in June.

NYK has set ambitious goals as part of its broader environmental, social, and governance (ESG) commitments, detailed in their “ESG Story 2023”, published in November.

Among these goals is a 45% reduction in greenhouse gas scope 1 and 2 emissions by 2030 compared to 2021. This includes concentrating on the study and creation of ammonia-powered ships.

Reference: Offshore Energy

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