JERA Secures Green Ammonia Supply for Japanese Shipping
The five-year agreement with AM Green will fuel car carriers starting in 2028-29 to support national decarbonization targets.
Updated on Oct. 27, 2026 in Energy
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JERA has signed a binding agreement with AM Green to import 70,000 tonnes of green ammonia annually for five years. This announced supply chain project will support Japan’s decarbonization efforts by providing fuel for ammonia-powered car carriers.
Why it matters
Securing long-term green ammonia supplies is essential for Japan’s strategy to transition its heavy industry and shipping sectors away from traditional carbon-heavy fuels. This agreement establishes a dedicated pathway for renewable-sourced chemical fuel delivery from India to Japan’s energy infrastructure.
The agreement guarantees an annual delivery of 70,000 tonnes of green ammonia for five years. The supply relies on the Kakinada facility, which will integrate renewable energy and large-scale storage for synthesis.
The players
JERA
A major Japanese utility company focused on thermal power generation, grid infrastructure, and energy decarbonization.
AM Green
An energy producer developing large-scale green ammonia production facilities in India.
The details
AM Green will produce the ammonia at a facility in Kakinada, Andhra Pradesh, using processes powered by renewable energy. Once produced, the ammonia will be transported to Aichi Prefecture, Japan, and handled by infrastructure developed near the Hekinan Thermal Power Station. This receiving and storage network acts as a logistics hub for distributing the fuel to ammonia-fuelled car carriers.
Timeline
October 27, 2026: JERA and AM Green formalize the supply pact.
2028-29: AM Green expects to commission the Kakinada production facility.
The Tech Race
This agreement marks a concrete step in the global competition to establish reliable green ammonia supply chains for maritime and industrial use. It aligns with Japan’s broader decarbonization goals by operationalizing the transition of heavy shipping fleets to carbon-neutral fuels.
This deal shifts the fuel source for specific Japanese car carrier fleets, though consumers will see no immediate changes to logistics costs or vehicle availability. Commercial scale-up remains dependent on the successful completion of the India-based production facility by 2028-29.
The takeaway
The deal signals that international supply chains for ammonia-based shipping fuels are moving from pilot phases to long-term contract status. Stakeholders should track the 2028-29 commissioning date at Kakinada to confirm that production output matches the 70,000-tonne annual goal.
What happens next
The commissioning of the Kakinada production facility is scheduled for 2028-29.
Further reading
Explore the shifting landscape of global Energy to understand the infrastructure behind hydrogen and ammonia fuel adoption.
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