JERA, Japan’s leading power generator, and ExxonMobil has partnered to explore the development of a low-carbon hydrogen and ammonia production project in the United States.

ExxonMobil is currently working on what is expected to be the world’s largest low-carbon hydrogen production plant at its Baytown Complex in Texas. The plant is set to have an annual output capacity of approximately 900,000 metric tons of hydrogen and over 1 million tons of ammonia, according to Reuters.

The project is scheduled to begin production in 2028. As part of the agreement, JERA may invest in the project and purchase around 500,000 tons of low-carbon ammonia annually for use in Japan.

Unlike traditional fuels, ammonia does not emit carbon dioxide when burned, making it a more environmentally friendly option.

Steven Winn, JERA’s senior managing executive officer, emphasized the importance of cooperation among leading companies in establishing supply chains for ammonia, hydrogen, and other zero-emission thermal power products.

Similarly, Dan Ammann, president of ExxonMobil Low Carbon Solutions, stated that the successful development of large-scale projects in new markets requires a balance between supply, demand, and supporting regulations.

Japan, the world’s fifth-largest emitter of CO2, has been actively promoting ammonia as an alternative fuel to reduce emissions from coal-fired power plants and other industrial facilities. The country aims to increase its demand for ammonia as a fuel to 3 million tons by 2030 as part of its goal to become carbon neutral by 2050.

In line with this goal, JERA is set to begin a trial this week of co-firing 20% ammonia with coal at its Hekinan thermal power station in central Japan, to become the first of its kind using a large amount of ammonia at a major commercial plant.