JERA is on track to achieve 20% co-firing of ammonia at Hekinan Coal Power Plant in FY29

The head of the plant said that JERA, Japan's largest power generator, is on track to achieve a 20% ammonia-co-firing in fiscal 2029 at one unit?of?its Hekinan Thermal Power Station. This will be the first commercial use for ammonia as fuel.

Mitsutaka ban, the head of Japan's biggest coal-fired plant, spoke to reporters during a presentation at the 4.1 gigawatt central Japan plant. Four large ammonia storage tanks are being built in the project.

The project is still moving forward despite the waning momentum of global energy transition. High costs for ammonia, hydrogen and other materials have caused energy companies to reduce or delay their investments. Ban told reporters that it is undeniable the investment climate for hydrogen, renewable energy, and ammonia has stagnated. "But we think that continuing to decarbonise is the best way to prepare for the future."

JAPAN'S CLIMATE ACTIONS ARE DEPENDENT ON AMMONIA AND HYDROGEN

Japan's climate strategy relies on ammonia and hydrogen, both of which do not emit CO2 when they are burned. JERA intends to start commercial co-firing with 20% ammonia in the plant's 1 GW No. The government has provided a subsidy for 15 years to cover the difference in cost between coal and ammonia. The company plans to import ammonia from a U.S. facility in 2029. The company formed a joint-venture with CF Industries and trading house Mitsui in order to build one the world's biggest low-carbon ammonia plant in Louisiana.

JERA, a joint venture between Tokyo Electric Power (TEP) and Chubu Electric Power (CEP), plans to sell 490,000 tons per year, with the majority going to Hekinan where 500,000 tons are required for 20% co-firing in one unit. After reaching this goal at No. JERA plans to expand the technology and demonstrate it at a second unit. It also wants to achieve net-zero emission from its domestic operations by 2020.

Ban stated that electricity generated by the project could either be sold at a premium on wholesale markets, or directly to consumers through power purchase agreements. (Reporting and editing by Tomaszjanowski)

(source: Reuters)