JERA’s Ammonia Bet

Japan cannot switch off coal overnight. It imports almost all of its energy, has limited land for solar and wind, and still relies on coal for close to 30% of its electricity. JERA, the country’s largest power generator, is betting on a different route: burning ammonia, a fuel that contains no carbon, alongside coal in existing plants. Here is how ammonia co-firing works, where JERA stands, and why the debate matters beyond Japan.

Why ammonia?

Ammonia (NH₃) is made of nitrogen and hydrogen. When it burns, it produces water and nitrogen, not carbon dioxide. It is also easier to handle than pure hydrogen: it liquefies at about -33°C or under modest pressure, and the world already ships around 18 million tonnes of it a year for fertilizer.

For a country like Japan, that makes ammonia a practical way to carry hydrogen across the ocean. Existing coal boilers can be adapted with new burners rather than rebuilt, which protects billions of dollars in assets that would otherwise become stranded.

JERA’s Hekinan plant

JERA, a joint venture of TEPCO Fuel & Power and Chubu Electric, operates the Hekinan Thermal Power Station in Aichi Prefecture, one of Japan’s largest coal plants. Its Unit 4 has a capacity of 1 gigawatt.

The 2024 demonstration

Between April and June 2024, JERA and engineering group IHI ran a large-scale test at Hekinan Unit 4, replacing 20% of the coal’s heat input with ammonia. It was the first time ammonia had been co-fired at this ratio in a commercial-scale coal unit. The companies reported stable operation and nitrogen oxide (NOx) emissions at or below those of coal-only firing, which had been the main technical concern. Sulfur oxides fell in line with the reduced coal use.

From test to commercial operation

JERA now plans to run Hekinan Unit 4 at 20% ammonia commercially from the fiscal year starting April 2029. The project secured a 15-year government subsidy under Japan’s Hydrogen Society Promotion Act, which covers the price gap between ammonia and coal.

Where the ammonia will come from

A single 1 GW unit at 20% co-firing needs about 500,000 tonnes of ammonia a year. To secure it, JERA joined CF Industries and Mitsui & Co. in the Blue Point project in Louisiana, a roughly $4 billion plant that will capture and store the CO₂ from production. JERA expects to import about 490,000 tonnes a year from the project, most of it for Hekinan.

The long-term roadmap

JERA’s stated goal is net-zero CO₂ by 2050. The plan moves in stages:

• 20% co-firing — first commercial unit around 2029.
• 50% or higher — burner development with IHI and Mitsubishi Heavy Industries is already testing higher ratios.
• 100% ammonia — single-fuel firing in boilers and gas turbines toward the 2040s.

Japan’s government also promotes the technology across Southeast Asia, where young coal fleets in Indonesia, Vietnam and the Philippines face the same problem of how to cut emissions without closing new plants.

The criticism

Ammonia co-firing has strong critics, and the debate shapes how investors and buyers view the technology.

• Limited emissions cut — at 20%, a plant still burns 80% coal. Critics say this extends the life of coal plants rather than replacing them.
• Upstream emissions — most ammonia today is made from natural gas without carbon capture (“grey” ammonia). The climate benefit depends on blue (with carbon capture) or green (from renewable power) supply.
• Cost — low-carbon ammonia costs far more than coal per unit of energy, which is why a long subsidy was needed.
• Nitrous oxide — poorly controlled combustion can release N₂O, a strong greenhouse gas. The Hekinan test reported very low levels, but this needs to be proven over years of operation.

Why it matters for overseas partners

• Ammonia producers — Japan is building one of the world’s first large, long-term demand centres for low-carbon ammonia. Projects in the US, Middle East and Australia are competing for offtake contracts.
• Shipping and port operators — new import terminals, storage tanks and ammonia carriers will be needed in Japan and along supply routes.
• Equipment makers and engineers — burners, NOx control, safety systems and monitoring are areas where Japanese firms such as IHI and MHI seek partners and export markets.
• Asian utilities and governments — the Hekinan results provide data for countries considering the same route for their coal fleets.

Conclusion

Ammonia co-firing is not a quick fix for coal, and its climate value depends on how the ammonia is made. But Japan has moved it from the laboratory to a 1 GW unit and toward a commercial start in 2029, with supply contracts and subsidies in place. Whether it becomes a bridge to zero-carbon power or a way to extend coal will depend on how fast the co-firing ratio rises after that.