Japan’s flagship ammonia co-firing strategy is designed to simultaneously maintain and decarbonise coal power generation’s position in the national grid. But is it a costly dead end?

This report, first published in April 2025 and updated with new information in June 2025, examines the financial viability of the plan, revealing significant economic challenges that threaten its long-term sustainability.

According to our findings, production costs could be twice the potential revenue, while current government subsidies fall far short of the actual funding required.

The report calls for an urgent reassessment of Japan’s ammonia pathway and support for more cost-effective and climate-resilient alternatives.