Jointly Exploring the Creation of an Ammonia Supply Chain with JERA and Yara International

Idemitsu Kosan Co.,Ltd. (Head office: Chiyoda-ku, Tokyo; Representative Director, President & Chief Executive Officer: Shunichi Kito; hereinafter “Idemitsu”) is pleased to announce that it has signed a Memorandum of Understanding (MOU) with JERA Co. Inc., (Head office: Chuo-ku, Tokyo; President and Representative Director: Satoshi Onoda; hereinafter “JERA”) and Yara International ASA (Head office: Oslo, Norway; President and CEO: Svein Tore Holsether; hereinafter “Yara International”) on 5 October, 2021 to jointly explore the creation of a clean ammonia supply chain. Under the MOU, the three companies will explore the establishment of a domestic clean ammonia distribution network based at the Tokuyama Complex (Shunan City, Yamaguchi Prefecture; General Manager: Tetsuji Mishina; hereinafter the “Tokuyama Complex”), establishment of an ammonia bunkering business utilizing Tokuyama Complex and the cultivation of demand, and optimization of fuel ammonia shipping supply chain for domestic use. Idemitsu will continue to contribute to the materialization of a carbon-neutral society in cooperation with various leading companies in Japan and overseas.

As Japan and the world strive toward carbon-neutrality, ammonia, which does not emit CO2 when burned, is expected to become a next-generation fuel. It is particularly attracting attention as a fuel for power generation, particularly coal-fired power generation. Empirical studies of ammonia co-firing with coal are now under way. Idemitsu plans to trial ammonia co-firing using existing naphtha cracking furnaces and coal boilers at the Tokuyama Complex, with a view to supplying CO2-free ammonia to customers near the complex in the future as a solution to reduce CO2 emissions.

JERA, Japan’s largest power producer, aims to co-fire CO2-free ammonia at its own coal-fired power plants and is also actively involved in its production. Yara International, one of the world’s largest ammonia manufacturers, manages several international ammonia distribution projects and is currently engaged in CO2-free ammonia production in Europe and Australia.

Under the “CNX* Center” concept outlined in the Medium-term Management Plan (Fiscal Years 2020-2022) , which aims to transform refineries and complexes into low-carbon resource recycling energy hubs, Idemitsu seeks to establish a CO2-free ammonia supply chain as quickly as possible. The Group is considering initially using the Tokuyama Complex as a base. The collaboration with JERA and Yara International will accelerate the creation of such an ammonia supply chain.

Idemitsu will continue to reduce CO2 emissions across its own operations, while aiming to provide a stable supply of low-carbon energy to help its customers reduce their own CO2 emissions.

*CNX: Carbon Neutral Transformation

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Public Relations Department Public Relations Section, Idemitsu Kosan Co.,Ltd.

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