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JERA and CF Industries Execute MOU for the Joint Project Development and Sales & Purchase of Clean Ammonia

1/17/2023

JERA Co., Inc. (“JERA”) has executed a Memorandum of Understanding (“MOU”) for potential collaboration for the joint project development and sales & purchase of clean ammonia with CF Industries.

Under the MOU, JERA and CF Industries have agreed to jointly study the viability to collaborate in the following areas:

The sales and purchase of clean ammonia for the 20% co-firing operations at the Hekinan Thermal Power Plant Unit 4 in Japan, which is targeted to commence in 2027. The required volume is expected to be up to 500,000 mtpa.
The joint development of a 1 million plus mtpa blue ammonia project which CF Industries is considering to develop in the US Gulf Coast.

CF Industries, based in Illinois, USA, is the world’s largest producer of ammonia, a global leader in ammonia sales, and actively working to decarbonize the ammonia production process.
The execution of this MOU is the result of the tender process for the procurement of clean ammonia which JERA has commenced in 18th February 2022*.
Through this process, JERA has discussed with various companies to compare and evaluate them to determine the potential partners with which it will cooperate in sourcing the clean ammonia for the world’s first commercial scale ammonia co-firing operations.

JERA Corporate Vice President Yukio Kani said, “We are pleased to work together with CF Industries on this significant journey towards decarbonizing the industry, and I am confident that CF Industries’ reliable operational capabilities that formed its track record for safe and efficient production as the world’s largest ammonia producer will profoundly contribute to JERA’s structuring of the clean fuel ammonia value chain. JERA will continue its own efforts as well as to take hands with our partners in pursuit of our endeavor to realize and accelerate not only the decarbonization of the Japanese energy industry but also to solve the energy-related issues that the world is facing.”

CF Industries Holdings, Inc. president and chief executive officer Tony Will said, “We are pleased to continue to build our relationship with JERA as we advance our shared commitment to accelerate the world’s transition to clean energy. Our leading ammonia production network and disciplined investments in clean energy initiatives have positioned CF Industries at the forefront of clean ammonia supply. We look forward to helping JERA and Japan meet its clean ammonia requirements, which represent the first significant volume of what we believe will be substantial global demand for clean ammonia as a clean energy source.”

JERA will continue to contribute to energy industry decarbonization through its own proactive efforts to develop decarbonization technologies while ensuring economic rationality. Additionally, JERA will also work to establish and expand the supply chain for clean fuels such as ammonia by expanding their commercial flow through various ways, including cooperation with Japanese power utilities, that contribute to the safe and stable supply of fuel ammonia.