Japanese energy and power company JERA has signed a binding agreement with India’s AM Green for long-term green ammonia supplies, with the fuel intended for bunkering ammonia-fuelled car carriers.
The deal covers around 70,000 tonnes/year for five years, with supplies planned from AM Green’s Kakinada facility from 2028/29, JERA announced on Tuesday.
The ammonia will be delivered to Japan for use by a planned venture involving shipping companies K Line and NYK, which intends to use an ammonia bunkering vessel to supply fuel to ammonia-fuelled car carriers.
“This agreement reflects the growing demand for competitively priced green molecules from India and reinforces the strategic role of our Kakinada project in supporting Japan’s and maritime industry’s decarbonisation ambitions,” Mahesh Kolli, Group President and Joint Managing Director of AM Green, said.
JERA is among the seven Japanese companies that announced a collaboration on Tuesday to develop an ammonia bunkering network in Japan.
Ammonia-fuelled oceangoing vessels are beginning to enter the global fleet, with maritime firm Exmar taking delivery of the first such vessel earlier this year.
