Japan's JERA to study ammonia supply to ships with NYK and Resonac

SINGAPORE (Reuters) - Japan's top power generator JERA said on Wednesday it would conduct a joint study with shipping major NYK Line and chemical company Resonac to supply ammonia to ships, as it seeks to expand the use of the low-carbon fuel beyond power plants.

The study is the latest among shippers including North Sea Container Line, MOL and Bunker Holding that are exploring ammonia as an alternative marine fuel as they seek ways to cut emissions and meet decarbonisation goals.

JERA said its joint study would look at supplying ammonia to a tugboat to be built using an ammonia-fueled engine developed by NYK Line.

The tugboat is scheduled for delivery in June 2024, according to NYK's website.

The study will focus on establishing safe operational methods for ammonia, transporting the fuel to port areas and receiving it, as well as creating rules on its use as a marine fuel, JERA said.

Ammonia is mainly made from hydrogen produced from natural gas and nitrogen from the air. It does not emit carbon dioxide when burned, but its production releases emissions if it is made with fossil fuels.

JERA said it aimed to extend ammonia supply beyond the power generation sector into shipping as part of its decarbonisation goals.

The company has been conducting several studies, including ammonia co-firing at coal-fired power plants Japan, the Philippines and Malaysia.

(Reporting by Jeslyn Lerh; Editing by Rashmi Aich)