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Japan’s JERA and Thai power company eye energy transition

© Shutterstock / petrmalinakhydrogen fund fuel cell
Hydrogen storage tank concept.

Japan’s JERA has signed a memorandum of understanding with Electricity Generating Public Company Limited (EGCO), a major power generation company in Thailand, to cooperate in the energy transition field. The pair are eying opportunities in LNG, hydrogen, and ammonia.

In Asia, there is demand both for decarbonisation and for a stable energy supply that supports economic growth. “Gas-fired power generation—which emits less carbon dioxide (CO2) than power generation using other fossil fuels—can be a flexible supplement to intermittent renewable energy and, as an energy source indispensable to moving the energy transition forward, demand is expected to continue to grow,” said JERA, the world’s largest buyer of liquefied natural gas (LNG).

“Hydrogen and ammonia—which do not emit CO2 during combustion—are considered to have great potential as next-generation fuels that will contribute to the decarbonisation of thermal power generation. JERA is working to develop zero-emission thermal power generation plants and to establish a large-scale supply chain for hydrogen and ammonia,” added JERA, which is a 50-50 joint venture between Tokyo Electric Power Company and Chubu Electric Power.

The MOU stipulates that JERA and EGCO will discuss the possibility of collaboration to develop LNG value-chain projects and establish a large-scale supply chain for hydrogen and ammonia.

“JERA has contributed to a stable supply of energy in Thailand as a shareholder with an approximately 12% stake in EGCO through TEPDIA Generating B.V. In Thailand, where energy demand is expected to continue to increase in line with economic growth, JERA believes that pursuing business opportunities to develop LNG value-chain projects and to establish hydrogen and ammonia supply chains together with EGCO based on this MOU will enable it to contribute to expanding its earnings base, improving the reliability of its supply of LNG and next-generation fuels, and securing economic efficiency,” JERA said in a statement.

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