Japan’s JERA Begins Construction of $1.8 Billion Ammonia Co-Firing Facility at Hekinan Power Station

JERA, Japan’s largest power-generation company, has started construction on a $1.8 billion ammonia co-firing upgrade at the Hekinan Thermal Power Plant, marking one of the most significant decarbonization investments in Asia’s power sector. The upgrade will allow the facility to replace up to 50 percent of its coal usage with clean ammonia supplied by partners in Saudi Arabia, the UAE, and Australia.
The move positions JERA as a regional leader in ammonia-based clean energy. The company has been testing co-firing technologies since 2022 and is now entering the full commercial upgrade phase, supported by Japan’s Ministry of Economy, Trade and Industry.
JERA executives say that co-firing ammonia could help Japan cut emissions without compromising grid stability, which remains a concern given the country’s limited renewable potential due to land constraints. The Hekinan plant, which supplies power to central Japan, is expected to become the world’s largest commercial ammonia-co-firing facility by 2028.
Saudi Arabia’s Aramco and Australia’s Fortescue Future Industries will provide the majority of clean ammonia shipments starting in 2027. The UAE’s ADNOC is negotiating a long-term supply contract as it expands its blue-ammonia production in Ruwais.
South Korea and Singapore are closely watching Japan’s progress as they consider similar conversions. Analysts say JERA’s project could influence energy policy across Asia, particularly in nations seeking emissions reduction without rapid coal-phaseout.
Environmental groups have expressed concerns about ammonia’s long supply chain, but Japan argues the overall emissions are significantly lower than coal. JERA says the facility will reduce carbon emissions by more than 5 million tons per year once fully operational.
The project underscores rising global competition for clean ammonia supply and reinforces Japan’s partnerships with GCC energy producers seeking to diversify beyond crude oil.