JERA and EGCO Conclude an MOU related to Cooperation in the Energy Transition Field2022/04/26

JERA Co., Inc. (“JERA”) has concluded a memorandum of understanding (the “MOU”) with Electricity Generating Public Company Limited (“EGCO”), a major power generation company in Thailand, to cooperate in the energy transition field.

In Asia, there is demand both for decarbonization and for a stable energy supply that supports economic growth. Gas-fired power generation—which emits less 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.

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 decarbonization 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.

The MOU stipulates that JERA and EGCO will discuss the possibility of collaboration in order 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.

Leveraging its long experience in the LNG value-chain business, JERA will follow the decarbonization roadmaps it is drawing up for each country and region as it strives to expand the adoption of LNG—a transitional fuel indispensable for achieving decarbonization. In order to achieve its “JERA Zero CO₂ Emissions 2050” objective, JERA will continue to work with leading companies in Japan and overseas to establish and expand supply chains for hydrogen and ammonia, thereby contributing to global decarbonization and energy solutions.