Thread by @SStapczynski

Japan wants to sign a huge clean ammonia supply deal 🇯🇵

🚢 JERA, the nation's top power producer, just issued an RFP seeking to purchase up to 500,000 tons/year of clean ammonia from 2027 to the 2040s
🚢 This is essentially the biggest international auction ever for fuel ammonia

The goal is for JERA to replace ~20% of coal at a power plants with the ammonia in order to curb emissions

When ammonia is combusted, it doesn't produce CO2. However, producing ammonia today is still quite dirty. That's why JERA wants clean ammonia

bloomberg.com/news/articles/…

While ammonia has historically been used as a fertilizer, it’s receiving attention as both the government and companies pledge carbon emission reduction targets and try to reduce emissions from fossil fuels

More details here via @shoko_oda

bloomberg.com/news/articles/…

Japan included ammonia and hydrogen in its national energy strategy for the first time last year, targeting to have the two fuels make up 1% of the nation’s energy mix by the year starting April 2030

To be sure, Japan's plan to co-fire coal and ammonia will also extend the life of its coal-fired power plants

That means that the country will be dependent on coal for longer, even if they are slightly curbing emissions from those facilities

H/T @anunezjimenez

The clean ammonia that Jera plans to procure will cost two-times more than LNG. Not a cheap investment

Source:

https://twitter.com/electric_taro/status/1494868981295230976