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CG rendering of an ammonia carrier (© MOL)

MOL and Jera sign a charter agreement for two ammonia carriers

Mitsui O.S.K. Lines is set to transport low-carbon ammonia from the US to Japan from around 2029. The two VLGCs are being built by Kawasaki Heavy Industries.

The Japanese shipping company Mitsui O.S.K. Lines (MOL) and the Japanese energy supplier Jera have signed a long-term time charter agreement for two Very Large Gas Carriers (VLGCs). The vessels are to transport low-carbon ammonia from the “Blue Point Project” in the US state of Louisiana to Japan.

Jera is a partner in the project. The aim is to deliver the ammonia to the Hekinan Thermal Power Station in Hekinan, Aichi Prefecture, from around the 2029 financial year onwards. According to MOL, this will establish Japan’s first large-scale transport chain for low-carbon ammonia.

MOL and Jera had been in discussions since November 2022 regarding cooperation on the transport of ammonia as a fuel. The charter agreement now concluded is based on a memorandum of understanding signed in 2025. The agreement forms part of the plan to establish a commercial value chain for low-carbon ammonia.

Ammonia is regarded as a potential energy carrier for decarbonisation, as no CO₂ is released during combustion. In addition to its use in power generation and as a marine fuel, ammonia is also being considered as a hydrogen carrier.

The two vessels are being built by Kawasaki Heavy Industries . They are VLGCs with a cargo capacity of around 87,000 m³. Delivery is scheduled for the first half of 2027. The vessels are approximately 229.90 m long, 37.20 m wide and have a design draught of 11.65 m.

In this context, MOL refers to its environmental strategy as part of the “Blue Action 2035” management plan. The group aims to achieve net-zero greenhouse gas emissions by 2050 and to participate in the development of a value chain for low-carbon ammonia.

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Caption: Rendering of an ammonia carrier (© MOL)