JERA Co., Inc. (“JERA”) and IHI Corporation (IHI) have announced the beginning of the world’s first demonstration testing of ammonia substitution at a large-scale commercial coal-fired thermal power plant. The test involves the first application of fuel ammonia substitution at large volume (up to 20% of heating value).

The demonstration test is significant as it may offer a technologically feasible route to permit countries with significant coal-fired generation capacity to reduce emissions from installed generation capacity without the need to replace existing coal-fired plants. 

The potential solution is likely to create additional demand for ammonia, and is likely to be closely followed by market participants in the Asia-focused thermal coal seaborne market. The Asia Pacific region has become the most important thermal coal trading region in recent years, supplying 63% of seaborne thermal coal exports, and receiving 82% of all imports in 2021.