Driving High-Value-Added Industrial Transformation through Public-Private GX Partnership

From Hekinan to Yokkaichi: Connecting Regions Through Ammonia Supply

JERA has set a long-term goal of “JERA Zero CO₂ Emissions 2050,” aiming to achieve net-zero CO₂ emissions from all our domestic and international operations by 2050. To reach this goal, we are creating a new energy supply model that combines zero-CO₂-emission thermal power with renewable energy.

One key initiative is the ongoing transition to ammonia fuel at Hekinan Thermal Power Station in Aichi Prefecture. Ammonia and hydrogen are gaining attention as alternative fuels to coal and LNG, as they do not emit CO₂ during combustion.

However, this transition requires a significant volume of fuel. For example, substituting 20% of the coal used for one of the 1GW units of Hekinan Thermal Power Station with ammonia would require an amount equal to roughly half of Japan’s total annual ammonia consumption.

By supplying part of this large volume of ammonia, we hope to contribute to the decarbonization of the neighboring Yokkaichi Industrial Complex, located across Ise Bay. Yokkaichi Industrial Complex is one of Japan’s largest petrochemical hubs and home to many energy-intensive industries. We expect this initiative to expand the region’s energy options.

Partnerships with Twelve Companies with Views for Shared Infrastructure

Twelve companies closely connected to the Yokkaichi Industrial Complex are participating in this agreement. The agreement also outlines plans to jointly explore the development of facilities to receive hydrogen and ammonia in the future. These efforts are expected to promote decarbonization across the region and enhance the industrial value overall. Okuda commented, “Utilizing hydrogen and ammonia is not easy, and adoption comes with significant costs. That is why, unless we also look for ways to increase the added value of our products, the widespread use of decarbonized fuels will be difficult to achieve.”

This initiative goes beyond environmental measures—it is also designed to strengthen the competitiveness of the industrial complex.

A First Step Toward High-Value-Added Transformation

This initiative is not just about switching fuels—it represents a challenge to transform the industrial structure into a higher-value model. In areas like the Yokkaichi Industrial Complex, where diverse industries are concentrated, moving forward in a coordinated manner takes time. However, through co-creation among stakeholders, the goal is to establish GX as a standard practice. As part of these efforts, the head offices of the participating companies are considering the establishment of a forum to discuss strategies for enhancing the overall competitiveness and added value of the complex.

This co-creation also marks the first step toward realizing JERA’s vision of expanding its hydrogen and ammonia supply chain into other industries. If this model succeeds, it could be extended to other regions and industries, providing a springboard for spreading the value of GX throughout Japan.

Creating high added value by developing a new industrial linkage model with clean fuels

Message from Hisahide Okuda, JERA President, Director, CEO and COO

At JERA, we generate approximately 30% of Japan’s electricity. Looking ahead to 2050, we have set the goal of achieving net-zero CO₂ emissions from our power generation operations.

We are advancing projects to gradually replace conventional fuels with hydrogen and ammonia in our thermal power generation.

We will procure large volumes of hydrogen and ammonia for power generation and are considering options to supply a portion to the Yokkaichi Industrial Complex through this partnership.

By integrating new energy sources such as hydrogen and ammonia into the traditional petroleum supply chain, we hope to work together with all the members to create products with even higher added value.

We remain committed to supporting the continued development of the Yokkaichi Industrial Complex, with decarbonization and industrial value creation at the core of our efforts.