NYK Bulkship (Asia) Pte. Ltd., a Singapore-based company of NYK Group, has signed a time-charter contract with JERA Co., Inc. for two very large gas carriers (VLGCs) to move low-carbon ammonia from the US to Japan, according to NYK Group.
The deal puts shipping capacity behind one of Japan’s closely watched fuel-switching projects, with the cargoes expected to be produced in Louisiana and delivered to JERA’s Hekinan Thermal Power Station in Hekinan City, Aichi Prefecture.
Commercial operation of large-scale ammonia substitution combustion with a 20% heat value ratio is scheduled to start at the plant around fiscal year 2029.
The project is expected to become the first shipment of low-carbon fuel ammonia for power generation to Japan.
The charter contract follows discussions and evaluations under a memorandum of understanding signed in 2022 and heads of agreements reached in December 2025.
Each VLGC will be built at Sakaide Works of Kawasaki Heavy Industries Ltd. The vessels will have a length overall of 229.90 metres, breadth of 37.20 metres, depth of 21.90 metres, summer draft of 11.65 metres and tank capacity of about 87,000 cbm. They will use LPG/VLSFO dual fuel.
Ammonia is already used in fertilizers and chemicals, while its combustion is carbon-free. Under Japan’s Hydrogen Society Promotion Act, low-carbon ammonia is ammonia that meets a specified CO₂ emissions threshold during production and contributes to reducing Japan’s CO₂ emissions.
Ammonia used as fuel for power generation or ships is known as fuel ammonia, and fuel ammonia meeting the low-carbon criteria is classified as low-carbon ammonia.
NYK Group is a Japanese shipping and logistics group active across maritime transport and related services.
NYK Bulkship (Asia) Pte. Ltd. is a Singapore-incorporated NYK Group company involved in bulk and gas carrier operations.
JERA Co., Inc. is a Japanese energy company engaged in power generation, fuel procurement and related energy businesses.
Kawasaki Heavy Industries Ltd. is a Japanese industrial corporation with shipbuilding and marine engineering operations, including Sakaide Works.