Japanese top power generation company, JERA, is working with engineering company IHI [7013:JP] to prepare for a pilot program to co-fire 20% of ammonia with coal at JERA’s Hekinan thermal power station in Aichi prefecture, central Japan, as reported by Nikkei Asia on March 18. Scheduled to take place from March 26 to June 19, the program marks the world’s first attempt to adopt a large amount of ammonia at a major commercial power plant. Specifically, JERA will use ammonia in place of coal to produce 20% of the energy needed to power one of the five generators at the Hekinan Power Station. JERA aims to start the commercial operation of ammonia co-firing at Hekinanas early as 2027 and trial a 50% ammonia fuel mixture in 2028, ultimately building a power plant that operates solely on ammonia.

The pilot program is designed to study the feasibility and reliability of ammonia co-firing technology, paving the way for thermal power plants with zero carbon emissions. JERA will first use “grey” ammonia producedfrom fossil fuels, which costs approximately two to three times more than coal. Opponents of this technology contend that it might extend the life of dirty coal-fired power generation and that the existence of coal in these plants’ fuel mix should not be overlooked. Despite these concerns, JERA and some other Japanese firms remain optimistic about the technology’s potential to help many coal-reliant Asian countries decarbonize while sustainingeconomic growth.

Sources:

https://asia.nikkei.com/Business/Energy/Japan-s-JERA-IHI-to-test-ammonia-as-fuel-at-coal-power-plant

https://www.reuters.com/markets/commodities/jera-conduct-trial-co-firing-ammonia-coal-power-plant-march-june-2024-03-13/