JERA to Conduct International Competitive Bidding for the Procurement of Fuel Ammonia2022/02/18
JERA Co., Inc. (“JERA”), having decided to conduct an international competitive bid for the procurement of fuel ammonia, has today sent a request for proposals (“RFP”) describing bidding conditions to more than 30 companies.
Under its “JERA Zero CO2 Emissions 2050” objective, JERA has been working to reduce CO2 emissions from its domestic and overseas businesses to zero by 2050, to promote the adoption of greener fuels, and to pursue thermal power that does not emit CO2 during power generation.
As part of this effort, JERA is working on a project to demonstrate the use of fuel ammonia at the Hekinan Thermal Power Station, aiming to switch 20% of the fuel at Unit 4 to ammonia by the late 2020s. Given the steady progress of this demonstration project, JERA has decided to consider fuel ammonia suppliers in parallel, and to conduct an international competitive bid with the following main conditions:
Main conditions
|
Buyer |
JERA |
|
Supply period |
Long-term contract from FY 2027 into the 2040s |
|
Quantity |
Up to 500,000 tons per year |
|
Delivery mode |
FOB |
|
Other |
• As a rule, CO2 is either not generated during ammonia production or is captured and stored. • JERA has the opportunity to participate in production projects |
JERA will evaluate the proposals received and, after selecting multiple companies by around May of this year, move forward in discussing specifics with them.
JERA will continue to contribute to energy industry decarbonization through its own proactive efforts to develop decarbonization technologies while ensuring economic rationality. In addition, JERA will also work to establish and expand the supply chain for green fuels such as ammonia by expanding commercial flow in cooperation with domestic utilities.