JERA Co., Inc. -Low-Carbon Ammonia Production Project in the U.S.
Nishimura & Asahi advised JERA Co., Inc. on the offtake arrangements related to the low-carbon ammonia production project “Blue Point” in Ascension Parish, Louisiana, USA. JERA is a partner in the project with CF Industries Holdings, Inc., and Mitsui & Co., Ltd.
The project will develop the world’s largest ammonia production facility with an annual capacity of approximately 1.4 million tons. The facility will produce ammonia using natural gas as feedstock, with carbon capture technology implemented to capture, transport, and store the CO2 generated during production. With total investment of around USD 4 billion (about JPY 600 billion), JERA will contribute 35% and, as an investor, will offtake a portion of the produced ammonia for supply to markets in Europe, Asia, and other regions. Production is scheduled to begin in 2029.
The Nishimura & Asahi team was led by partner Alexander Woody and included partner Hiroyasu Konno, counsel Misato Fukushima, and associates Scott Alper and Shizuka Muramoto.
People
Hiroyasu Konno specializes in the energy and natural resources sector, mainly in the upstream and middle-stream sectors, such as projects and transactions regarding LNG, biomass fuels, coal, rare metals, copper ore, petroleum, and other minerals in the world, as well as the down-stream sectors such as transactions regarding electricity and gas in Japan. He has a breadth of knowledge about industrial practices and policy trends, through his experience working as a secondee, or temporary worker, at Nippon Oil (currently ENEOS), JOGMEC (Japan Oil, Gas and Metals National Corporation (currently Japan Organization for Metals and Energy Security))，and JERA, in addition to an energy and natural resources team in a foreign law firm, as well as experience from being a committee member of relevant governmental panels. He always endeavors to provide clients with legal services with additional value, including managerial perspectives. He handles all kinds of legal issues related to the energy and natural resources sector, by closely working together with N&A’s experts in each sector. He also actively works on legal issues with regard to “carbon”, such as CCS (Carbon Capture and Storage), transactions of carbon credits, and others.
Misato mainly engages in cross-border M&A and general corporate overseas matters. She supports both Japan-based and overseas clients who invest in various types of Japanese companies from startups to long-established businesses. She has been seconded to two Japanese companies in the energy sector, one is a fuel-trading subsidiary of a Japanese energy company in Singapore and the other is a major energy company in Japan. During her secondment, she advised on energy-related areas including electricity/gas trading and fuel trading, was involved in domestic offshore wind-power projects, renewable energy projects, and other business development projects. She advises energy companies on various matters including acquisitions, day-to-day transactions in energy-related areas, and development of new business. She also has experience supporting establishment and management of compliance systems, including advising on compliance with the Antimonopoly Act in Japan and handling whistleblowing cases.
Alexander Woody advises clients on energy and natural resources project investments, development and financing. He has over 20 years' experience in Japan, with a focus on cross-border LNG investments, tolling and purchase agreements and transportation arrangements.
Alex has worked extensively with arbitration specialists to provide strategic advice and assist clients to resolve disputes arising during the course of these long-term projects. He has also advised clients on solar, battery and wind power investments, as well as early stage hydrogen projects.
Alex is ranked by Chambers Global 2022 and Chambers Asia-Pacific 2022 as a Leading Lawyer for Projects & Energy: International - Japan. He is also ranked by the Legal 500 Asia Pacific 2022 as a Leading Individual: Gaiben for Projects and Energy: International Firms and Joint Ventures - Japan.