Japanese trader JERA has teamed up with nitrogen fertiliser producer Yara International on blue ammonia and is looking at the option of supplying it to the marine industry.

JERA said it has concluded a memorandum of understanding with Yara - one of the world’s largest producers of ammonia and a global leader in ammonia sales and shipping - to co-operate in the ammonia business.

This will include the development of a blue ammonia production plant.

The two companies said that under their agreement they will look at collaborating on improving the Yara Pilbara Fertiliser plant in Australia to enable the production of blue ammonia.

Colours of ammonia
  • Grey or brown ammonia: Produced from fossil fuels.
  • Blue ammonia: Produced using natural gas but with CO2 capture and storage.
  • Green ammonia: Produced from hydrogen made through water electrolysis using renewable energy.

In addition, they will examine the joint development of new blue and green ammonia production projects and development of a new demand for ammonia in Japan, including in power generation.

The Japanese trading giant, which has a zero CO2 emissions 2050 objective, said the partnership will also consider working together on the joint transportation of ammonia for shipping and the potential for cargo swaps.

“JERA may become a large ammonia off-taker and is interested in participating in each ammonia supply chain including transport,” a spokesman for the company explained

He added: “JERA is also interested in supplying ammonia to not only for power generation sector but also the other industries such as marine fuel.”

JERA and YARA are the latest partnership to look at supplying blue ammonia to the shipping industry.

In March Dutch trader OCI said plans to ramp up its production of blue and green ammonia and methanol to supply anticipated demand from the shipping sector.

This month New Fortress Energy announced it is hooking up with Fortress Transportation and Infrastructure in a new clean fuels joint venture Zero Parks which plans to produce blue ammonia for the marine sector in one of its first projects.

JERA corporate vice president Yukio Kani said Yara shares the company’s 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 decarbonised society,” Kani said.

Yara president and chief executive Svein Tore Holsether said the collaboration aims to decarbonise 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,” he added.