JERA to conduct trial of co-firing ammonia with coal at coal power plant from March to June.

A Japanese electricity company has secured agreements for the supply of one million tonnes per year of clean ammonia starting from 2027. JERA, Japan's largest power producer, is preparing to launch a government-funded trial to co-fire 20% ammonia with coal in one of its power plants later this month. The trial will take place at the 1-gigawatt Unit 4 of the Hekinan Thermal Power Station, utilizing burners developed by engineering conglomerate IHI, commencing on March 26th.

Last June, JERA entered into a sales contract with Mitsui, another Japanese company, for the supply of grey ammonia—derived from fossil gas without carbon capture—during the trial period. Additionally, JERA has signed memorandums of understanding with Yara and CF Industries for the supply of 500,000 tonnes per year each of blue or green ammonia from 2027, intending to expand the 20% co-firing from a trial to commercial operations.

JERA aims to demonstrate 50% ammonia co-firing by March 2029. Despite criticisms from analysts who argue that co-firing ammonia with coal may prolong the lifespan of highly polluting coal-fired power plants and lead to increased emissions compared to renewable energy alternatives or new gas-fired units, JERA contends that since coal, oil, and natural gas account for 80% of power generation and 40% of Japan's emissions, co-firing offers an immediate means to reduce coal consumption in existing assets.

The Japanese government has allocated subsidies totaling ¥27.9 billion ($187 million) to JERA for two demonstration projects aiming to co-fire at least 50% ammonia with coal in power plants by 2029.