December 19, 2025 – Tokyo, Japan – JERA, Japan’s largest power generator, has secured a 15-year government subsidy to cover the price gap between ammonia and coal, supporting its plans to begin importing low-carbon ammonia from a new U.S. facility in 2029. This move aligns with Japan’s broader energy strategy to reduce carbon emissions and transition toward cleaner fuels.

The subsidy is intended to make ammonia co-firing economically viable, enabling JERA to reduce reliance on coal while scaling up low-carbon energy solutions for its power plants and commercial customers.

The Blue Point Ammonia Project

In April 2025, JERA formed a joint venture with CF Industries and Mitsui to develop one of the world’s largest low-carbon ammonia production facilities, the Blue Point project, in Louisiana, USA. The $4 billion project will produce ammonia with significantly lower carbon emissions than traditional fossil fuels.

The ownership structure of the joint venture is as follows:

• CF Industries – 40%
• JERA – 35%
• Mitsui – 25%

Blue Point is expected to produce sufficient ammonia to support JERA’s Hekinan thermal power station in central Japan, which aims to implement commercial-scale ammonia substitution to cut coal usage.

Commercial Co-Firing Plans

JERA plans to start co-firing 20% ammonia with coal at its Hekinan No. 4 unit beginning in the fiscal year starting April 2029. The company anticipates offtaking about 500,000 metric tons of ammonia annually from Blue Point.

In addition to power generation, JERA intends to supply ammonia to commercial and industrial customers, supporting Japan’s industrial decarbonization initiatives.

Mitsui and Partner Commitments

Mitsui has confirmed that it, alongside its partners, secured government support to cover the price difference between ammonia and conventional fuels. The company plans to supply 280,000 metric tons of ammonia annually from Blue Point to partners such as:

• Hokkaido Electric Power
• Mitsubishi UBE Cement
• Tosoh Corporation
• Other industrial customers by fiscal 2030

Ammonia will serve as either fuel or feedstock, enabling these companies to significantly reduce their carbon dioxide (CO2) emissions.

Hydrogen and Ammonia in Japan’s Energy Transition

Hydrogen and ammonia are key pillars of Japan’s climate strategy, as both fuels produce no CO2 emissions when burned. By investing across the ammonia value chain and securing government backing, JERA and its partners aim to accelerate the adoption of low-carbon alternatives in power generation and industrial processes.

The financial terms of the government subsidy have not been disclosed, but the support is expected to be instrumental in enabling commercial-scale imports and sustainable operations starting in 2029.