Japan expands ammonia co-firing for thermal power decarbonization

Japan's ammonia co-firing power generation market is transitioning from technical demonstration to commercial implementation as utilities seek to reduce emissions from existing thermal power assets. Ammonia is being utilized as a means to transition to low-carbon power without completely replacing existing infrastructure.

At the Hekinan Thermal Power Station in Aichi Prefecture, JERA successfully completed a demonstration in 2024, replacing 20% of coal with ammonia by heat value in a 1GW unit. The test showed no increase in NOx and a reduction in SOx by approximately 20%. JERA plans to begin commercial-scale operations with a 20% ammonia substitution rate around fiscal year 2029, utilizing low-carbon ammonia imported from the United States.

To support this, JERA has secured charter agreements for four VLGC-sized ammonia carriers with NYK and Mitsui O.S.K. Lines. Furthermore, JERA and IHI are developing technology to increase the co-firing rate to 50%. This shift is driving growth in sectors including boiler engineering, ammonia storage, port infrastructure, and specialized burner manufacturing.