Loan for Low-Carbon Ammonia Manufacturing and Sales Business in the United States

Contributing to the development of supply chains for hydrogen and other products through the stable supply of low-carbon ammonia

1. The Japan Bank for International Cooperation (JBIC) (Governor: Nobumitsu Hayashi) signed a loan agreement with JERA Co., Inc. (hereinafter "JERA") on the 26th for a loan amount of up to 105 billion yen (JBIC portion). The loan is cofinanced with Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., and SBI Shinsei Bank, Limited, bringing the total cofinancing amount to 210 billion yen.

2. This loan will provide the funds necessary for JERA to invest in Blue Point Number One, LLC ("Blue Point"), a United States ("U.S.") corporation, to operate a low-carbon ammonia manufacturing and sales business in Louisiana through Blue Point.

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1. Hydrogen compounds, including hydrogen and ammonia (hereinafter "hydrogen, etc."), do not emit CO2 when burned, and are therefore positioned as a key energy source toward carbon neutrality in the Japanese government's Basic Hydrogen Strategy, the Seventh Strategic Energy Plan, and the GX2040 Vision. Furthermore, the Basic Hydrogen Strategy calls for the mobilization of large-scale funds through support from public financial institutions such as the Japan Bank for International Cooperation (JBIC) to build a large-scale, resilient hydrogen, etc. supply chain.

2. In this context, this project plans to utilize carbon capture and storage (CCS) technology to reduce CO2 emissions during the manufacturing process by more than 95%. JERA also plans to take back a portion of the low-carbon ammonia produced in this project and use it for fuel ammonia conversion at the Hekinan Thermal Power Plant. Furthermore, by supplying low-carbon ammonia to industries where reducing CO2 emissions is difficult, such as machinery and chemicals, the project aims to contribute to the decarbonization of each industry.

3. Through supporting JERA's overseas business, this loan will contribute to the establishment of a hydrogen supply chain with a view to realizing a decarbonized society and to the stable supply of low-carbon ammonia, an important energy resource for Japan. Furthermore, as the Japanese government promotes the supply and use of low-carbon hydrogen, this loan will support Japanese companies investing in nascent low-carbon hydrogen businesses, and is in line with the Japanese government's energy policy.

4. JBIC will continue to contribute to ensuring a stable supply of energy resources for Japan and addressing the energy transition towards realizing a decarbonized society by providing financial support to Japanese companies expanding their overseas businesses.