Japan’s energy major JERA has established a new business, JERA Cross, intending to combine the company’s energy, digital and business transformation capabilities to accelerate corporate “green transformation.”
JERA Cross will begin full-scale operations on June 1 and will be supported by management consultancy McKinsey & Company.
This new business will apply renewable energy supply-and-demand management and sales functions that leverage JERA’s expertise and digital technology in the energy domain to provide end-to-end decarbonization solutions spanning from management to execution, JERA revealed, noting that these new solutions will drive corporate sustainability transitions and accelerate decarbonization planning.
“JERA’s mission is to provide cutting-edge solutions to the world’s energy issues. Achieving a decarbonized society has become an important issue globally, and in Japan, too, there is a need to transition to a decarbonized society centered around clean energy. Driving corporate green transformation forward requires both a business transformation aimed at decarbonization and the ability to execute the energy transition,” JERA said.
Junya Tawa, JERA’s Chief Strategy Officer (CSO), remarked: “The green transformation encompasses both the technological issue of how to decarbonize the energy you consume and the strategic issue of how to link decarbonization to your corporate strategy. We hope JERA Cross will be a partner that walks together with its clients on their GX journey to solving both issues simultaneously.”
Naoyuki Iwatani, McKinsey’s Managing Partner in Japan, said: “I believe companies need to take immediate action to accelerate the energy transition. McKinsey, by supporting transformations and businesses like JERA and JERA Cross that address the challenge of climate change, will help achieve sustainable, inclusive growth at both the corporate and national level.”
To remind, in May, JERA unveiled a new growth strategy that integrates three key business pillars – LNG, renewables, and hydrogen and ammonia – along with an investment of 1-2 trillion yen (around $6-$12.9 billion) for each business pillar, and organizational edge, marking a pathway towards 2035, and ultimately its 2050 zero-emission goals.
In addition, the company announced its financial strategy and key financial targets, aiming to reach a consolidated net profit of 350 billion yen (around $2 billion) and an EBITDA of 700 billion yen (around $4.5 billion).