Japan’s top power producer will start one of the largest global auctions to buy ammonia, as it bets on the clean-burning fuel to curb emissions and hit its green goals.
Jera Co. aims to sign a long-term contract to purchase the ammonia starting from 2027, which the utility will use to replace some of the coal at one of its power plants, according to a statement on Friday. The power producer will seek bids where carbon emissions are not generated in the ammonia production, or are captured and stored in the process.
While ammonia has historically been used as a fertilizer, it’s receiving attention as both the government and companies pledge carbon emission reduction targets and try to reduce emissions from fossil fuels. Much of ammonia is still produced by burning natural gas or liquefied petroleum gas, but there’s anticipation that it could be made from cleaner energy in the future.