JERA, Kyushu Electric Power, Chugoku Electric Power, Shikoku Electric Power, and Tohoku Electric Power to Consider Collaboration Aimed at the Adoption of Hydrogen and Ammonia2022/11/29

JERA Co., Inc. (“JERA”), Kyushu Electric Power Co., Inc. (“Kyushu Electric”), Chugoku Electric Power Co., Inc. (“Chugoku Electric”), Shikoku Electric Power Co., Inc. (“Shikoku Electric”), and Tohoku Electric Power Co., Inc. (“Tohoku Electric”) have concluded a memorandum of understanding (“MOU”) today to consider collaboration aimed at the adoption of hydrogen and ammonia as fuel for power generation.

Because hydrogen and ammonia do not emit CO₂ during combustion, they are prospective next-generation replacements for fossil fuels. JERA, Kyushu Electric, Chugoku Electric, Shikoku Electric, and Tohoku Electric have each been studying ways to use hydrogen and ammonia in their thermal power plants.

At the same time, securing large volumes of hydrogen and ammonia to fuel power generation requires establishing and expanding new supply chains through cooperation among companies that are motivated to realize a decarbonized society.

The MOU, which was signed on 20 April 2022 by JERA, Kyushu Electric, and Chugoku Electric and recently joined by Shikoku Electric and Tohoku Electric, stipulates that the five companies, each of which operates large-scale thermal power plants in Japan, will discuss possibilities for collaboration in the following areas aimed at establishing and expanding supply chains for hydrogen and ammonia for fuel.

• Joint procurement aimed at reducing hydrogen and ammonia procurement costs for domestic power plants
• Establishment of transportation and storage methods for hydrogen and ammonia
• Working to gain policy support and to develop rules related to hydrogen and ammonia
• Exchange of opinions and discussion of collaborative projects related to the introduction of hydrogen and ammonia in Japan

Consideration of potential collaboration by the five companies—all major Japanese electric power companies with large-scale potential demand for hydrogen and ammonia—will contribute to the early establishment of a stable and economical supply chain for next-generation fuels aimed at realizing a decarbonized society.