JERA and Mitsui secure 35% of Japan’s US$19.2b hydrogen support programme fund

16 Jan JERA and Mitsui secure 35% of Japan’s US$19.2b hydrogen support programme fund

(Oilandgaspress) Japan’s Ministry of Economy, Trade and Industry (METI) has awarded its first international low-carbon ammonia projects under the government’s hydrogen Contract-for-Difference (CfD) scheme, marking a pivotal shift from small-scale domestic projects to large-scale international supply chains, according to Wood Mackenzie.

The two projects, led by JERA and Mitsui & Co., will import approximately 772,000 tonnes of blue ammonia annually (equivalent to 120,000 tonnes of hydrogen) from Louisiana, United States, starting in 2030-2031.

With approximately 65% of the $19.2 billion CfD funding pool remaining available after these awards, Wood Mackenzie anticipates that further international hydrogen awards will follow as Japan scales up its low-carbon hydrogen procurement.

Both projects will source blue ammonia from the Blue Point facility in Louisiana with a 1.4 million tonne per annum (Mtpa) project jointly developed with CF Industries. JERA holds 35% equity and will offtake 0.5 Mtpa starting February 2030, primarily for co-firing at its Hekinan coal-fired power station in Aichi. Mitsui holds 25% and will supply 0.28 Mtpa beginning January 2031, primarily to Hokkaido Electric Power for ammonia co-firing, with the remainder serving UBE Mitsubishi Cement and Tosoh facilities.

Together, the Japanese consortia have secured more than half of Blue Point’s production capacity, significantly de-risking the project’s commercial viability.

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