JERA Certified as a Low-Carbon Hydrogen and Derivatives Supplier under Japan’s Price-Gap Support Scheme 2025/12/19
Realizing Japan’s First Large-Scale Low-Carbon Ammonia Value Chain
JERA Co., Inc. (“JERA”), a global energy leader and Japan’s largest power generation company, today announced that it has been certified as a Supplier of Low-Carbon Hydrogen and its Derivatives by the Ministry of Economy, Trade and Industry (“METI”). The certification was granted under the “Support Focusing on the Price Gap” Scheme* (“the Scheme”) established in accordance with the Hydrogen Society Promotion Act.
Leveraging the support from this Scheme, JERA plans to supply low-carbon ammonia produced at the Blue Point Project in Louisiana, USA, for Hekinan Thermal Power Station, one of Japan’s largest thermal power plants pursuing commercial-scale ammonia substitution, as well as to other commercial and industrial customers.
With this certification, the various initiatives JERA has been advancing across different segments of the value chain, including production, transportation, and power generation, are now integrated. JERA targets to complete Japan’s first end-to-end low-carbon ammonia value chain by fiscal year 2029, which is a critical step toward JERA’s and Japan’s decarbonization efforts.
JERA has taken a comprehensive approach investing across the ammonia value chain.
Production Segment
➢Reached final investment decision (FID) on the Blue Point low-carbon ammonia production facility in Louisiana, together with CF Industries Holdings, Inc. and Mitsui & Co., Ltd. (announced on April 9, 2025).
Transportation Segment
➢Initiated discussions regarding potential collaborations on transporting fuel ammonia with industry-leading shipping companies Nippon Yusen Kabushiki Kaisha (NYK) and Mitsui O.S.K. Lines, Ltd. (MOL). (announced on November 21, 2022).
➢Signed legally binding heads of agreements for the chartering of four ammonia carriers with NYK Bulkship (Asia) Pte. Ltd. (NYK’s subsidiary) and MOL.
Power Generation Segment
➢Successfully conducted the world’s first ammonia substitution (20% heat value ratio) demonstration test in a large commercial coal-fired unit at the Hekinan Thermal Power Station. (announced on June 26, 2024).
➢Currently constructing facilities to enable large-scale ammonia combustion (20% heat value ratio) with commercial operation targeted for fiscal year 2029.
Beyond power generation, JERA plans to supply ammonia to a diverse range of industries, including the manufacturing and shipping industry. This initiative is expected to contribute significantly to the adoption of hydrogen and ammonia in Chubu region, and across Japan.
“Securing government support marks a significant milestone in advancing a comprehensive and resilient low-carbon ammonia value chain and paving the way for the expansion of ammonia across industries in Japan,” said Hisahide Okuda, President of JERA. “Anchored by Hekinan Thermal Power Station, JERA delivers tailored, cutting-edge, and effective solutions that support our customers’ decarbonization efforts—locally, nationally, and globally. As a pioneer, we are committed to the real-world deployment of low-carbon ammonia, and driving the transition toward zero emissions in alignment with evolving policy.”
Under its JERA Zero CO2 Emissions 2050 initiative, JERA aims to achieve net-zero CO2 emissions from its domestic and overseas operations by 2050 by working to expand renewable energy and simultaneously advancing zero-emission thermal power generation.
Going forward, JERA will continue to collaborate with leading domestic and international partners to expand low-carbon hydrogen and ammonia value chains, contributing to our mission to provide cutting-edge solutions to the world’s energy issues.
※Note on the “Support Focusing on the Price Gap” Scheme:
Under the Hydrogen Society Promotion Act, this Scheme is designed to bridge the cost difference between the price of low-carbon hydrogen and its derivatives (Base Price) and the price of existing fuels/raw material (Reference Price). This support is provided to certified suppliers to ensure a continuous supply in accordance with their approved plans.
■JERA’s Initiatives for Establishing the Low-Carbon Ammonia Value Chain (Concept Diagram)
■Construction work of the ammonia tank at the Hekinan Thermal Power Station (as of Nov. 27, 2025)
