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Fact sheet | Ammonia co-firing in Japan faces higher costs and constrained supply than renewables

August 19, 2026
Walter James
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Japan is pursuing ammonia co-firing in coal-fired power plants (CFPPs) as part of its power sector decarbonization strategy, targeting 20% co-firing by 2030, rising to 50% or more after 2030, and reaching 100% by 2050. Meeting these targets will require significant ammonia imports, with projects such as the Blue Point Complex in the United States — a prospective supplier with a planned 1.4 million tonnes per annum (MTPA) ammonia production facility — expected to help meet future demand. IEEFA’s fact sheet examines the progress of Japan’s ammonia co-firing plans, including the effectiveness of government support programs, the status of commercial deployment at CFPPs, and whether global ammonia supply can meet Japan’s projected demand. It also highlights the challenges of relying on imported ammonia for power sector decarbonization, energy security, and electricity affordability.

Read the report: Japan’s ammonia co-firing strategy constrained by cost, supply, and timing

Read the fact sheet in Japanese: コスト、供給、導入時期が課題となる日本のアンモニア混焼戦略

Walter James

Walter James is an Energy Finance Specialist at IEEFA with a particular focus on LNG, renewables and energy storage, and data centers in Japan.

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