The companies said METI granted the certification under the “Support Focusing on the Price Gap” scheme of Japan’s Hydrogen Society Promotion Act, which aims to accelerate the supply and use of clean hydrogen and its derivatives.

The scheme offers financial support over a 15-year period to close the price gap between fossil fuels and clean hydrogen.

Jera and Mitsui are partners, alongside CF Industries, in the 1.4 million tonne-per-year Blue Point blue ammonia project in Louisiana, which is expected to begin production in 2029.

The project, which reached final investment decision last year will use an autothermal reforming plant equipped with carbon capture to produce low-carbon ammonia.

Jera and Mitsui are expected to offtake volumes proportional to their respective 35% and 25% equity stakes in the project.

Jera intends to supply the ammonia to Japan’s Hekinan Thermal Power Station for blending with coal, while Mitsui plans to supply 280,000 tonnes per year to Hokkaido Electric Power, Mitsubishi UBE Cement and Tosoh Corporation.

Japan is increasingly looking to bolster its clean hydrogen imports to meet its decarbonisation goals in sectors like transportation and power generation. However, limited land availability and relatively low renewables penetration look set to see it rely on low-cost exporting nations.

Under its Hydrogen Society Promotion Act, the government aims to boost the supply of clean hydrogen in the country from either domestic production or imports.

For importers supported by the scheme, the incentive can be stacked with support mechanisms in the country where the hydrogen is produced. In the case of Blue Point, the project is expected to seek the US government’s $85/tonne carbon sequestration tax credit to support its economics.