MOL, JERA Sign Long-Term Charter Deal for Low-Carbon Ammonia Transport

Under the agreement, the vessels will carry low-carbon ammonia produced through the Blue Point Project in Louisiana, in which JERA has invested, to the Hekinan Thermal Power Station. Commercial operations are expected to commence around fiscal year 2029. The project represents a major milestone in establishing Japan’s first large-scale low-carbon ammonia transportation system and forms a critical part of the country’s broader efforts to reduce carbon emissions and diversify its energy mix.   MOL and JERA have been exploring cooperation in ammonia transportation since November 2022. The newly signed charter contract follows a memorandum of understanding (MOU) concluded in 2025 and is aimed at building a commercial-scale ammonia value chain linking production, transportation, and end-use.

Ammonia is increasingly viewed as a key next-generation clean energy source because it does not emit carbon dioxide during combustion. Demand for ammonia is expected to expand across power generation, industrial applications, and other sectors as countries seek pathways to achieve carbon neutrality.     The charter agreement also aligns with MOL Group’s long-term environmental strategy, “BLUE ACTION 2035,” which focuses on supporting global decarbonization through sustainable shipping solutions. The company said it will leverage its expertise in gas transportation to provide safe and reliable ammonia transport services while contributing to the development of a low-carbon ammonia supply chain.      Industry observers view the deal as a significant step toward scaling up international ammonia trade and supporting Japan’s transition to cleaner energy sources, while highlighting the growing role of shipping in enabling global energy transformation.