Mitsui O.S.K. Lines (MOL) has signed two Heads of Agreements with JERA Co. for the time charter of two very large gas carriers (VLGCs) purpose-built for ammonia transport, marking a major step toward establishing Japan’s first large-scale low-carbon ammonia shipping initiative.
Under the agreements, the vessels will transport low-carbon ammonia from JERA’s Blue Point Complex in Louisiana, United States, to the Hekinan Thermal Power Station in Aichi Prefecture. The project is expected to play a key role in supporting Japan’s energy transition by enabling the commercial-scale movement of low-carbon ammonia for power generation.
MOL and JERA have been in discussions on fuel ammonia transport since November 2022. The latest agreements build on those talks and are aimed at establishing a commercial low-carbon ammonia value chain, spanning production, transportation, and end use.
Ammonia, currently used mainly in fertilizers and chemical manufacturing, is increasingly being viewed as a next-generation clean energy source. When burned, it emits no carbon dioxide and can be used as fuel for power plants and ships, as well as a hydrogen carrier. Global demand for ammonia is expected to rise significantly as countries pursue decarbonization.
The initiative aligns with MOL’s long-term environmental strategy, BLUE ACTION 2035, and its “MOL Group Environmental Vision 2.2,” under which the company has committed to achieving net-zero greenhouse gas emissions by 2050. MOL said it aims to contribute to a decarbonized society by building a comprehensive ammonia value chain, while leveraging its experience in safe and reliable gas transport.
As one of the world’s largest shipping companies, MOL said it will continue to expand its marine transport–centered social infrastructure businesses, technologies, and services to meet evolving customer needs. Through these efforts, the group aims to support sustainable development, ensure stable energy supply, and deliver long-term value to stakeholders while helping shape a low-carbon future.
