Jera Co. Inc., Japan’s leading power producer and one of the world’s top buyers of LNG, has signed two tentative agreements for ammonia supply that include exploring plans for a Gulf Coast production facility fed by low-carbon natural gas.

Jera disclosed Monday memorandums of understanding (MOU) with a unit of Yara International ASA and CF Industries Holdings Inc. to potentially fulfill a tender it launched last year for up to 500,000 tons/year of low-carbon ammonia by 2027.

If finalized, CF Industries CEO Tony Will said the agreements could mark “the first significant volume of what we believe will be substantial global demand for clean ammonia” as a fuel source for power generation.

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Related topics: Ammonia Energy transition Gulf Coast Jera LNG

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