Japan is the global leader in ammonia fuel technology, with JERA (Japan's largest power generator) and IHI Corporation conducting the world's most advanced ammonia co-firing demonstrations at commercial coal power plants. The current phase demonstrates 20% ammonia blending by heat value, with targets of 50% by 2030 and 100% ammonia firing by 2040. IHI has developed dedicated ammonia combustion technology that manages NOx emissions — ammonia's primary combustion challenge.
Ammonia (NH3) contains no carbon and can be produced from green hydrogen, making it a carbon-free fuel that can be transported using existing liquid fuel infrastructure. Japan's interest is strategic: the country cannot generate enough renewable electricity domestically (limited land, solar potential) and needs importable, storable, carbon-free energy carriers. Ammonia fits this requirement better than hydrogen for power generation due to easier storage and transport.
The technology has global implications: if Japan demonstrates viable ammonia firing at commercial scale, it creates a decarbonization pathway for coal-dependent economies across Asia (India, Indonesia, Vietnam, Philippines) without requiring complete infrastructure replacement. Japan is positioning itself as the technology licensor and ammonia supply chain orchestrator, with sourcing agreements from Australia, Saudi Arabia, and the UAE.