JERA, a Japanese energy company, and Lotte Fine Chemical (LFC), a South Korean chemical company, have entered into a joint collaboration agreement to develop low-carbon fuel value chains in Asia.
This partnership aims to accelerate the creation of a ‘robust’ low-carbon fuel infrastructure, addressing the growing need for enhanced energy security in the region.
As reported, the joint agreement is structured around several critical objectives. These include the standardization of commercial frameworks, the optimization of ammonia portfolios to increase operational flexibility, and joint discussions with government entities to support and expand the low-carbon fuel value chain.
To guide the effort, the Japanese government and the Government of the Republic of Korea (ROK) released the “Japan-ROK Hydrogen and Its Derivatives such as Ammonia Cooperation Dialogue”, a program that is said to have been created ‘to enhance collaboration across several key areas’.
Director-General of the Energy Efficiency and Renewable Energy Department of the Agency for Natural Resources and Energy, Hiroo Inoue, commented: “As Japan and Korea strengthen their cooperation to achieve ensure energy security and building resilient supply chains for clean hydrogen and its derivatives, we encourage this agreement of JERA and LFC and look forward to further progress in these endeavors.”
JERA, an equal joint venture of two large Japanese electric power companies, TEPCO Fuel & Power Incorporated and Chubu Electric Power Company, has made numerous strides in reaching the Net Zero goal. Just earlier this year, JERA released a new growth plan focused on three main business pillars, namely LNG, renewables and hydrogen & ammonia, with 1-2 trillion yen (around $6-$12.9 billion) afforded to each pillar.
Meanwhile, Lotte signed a Memorandum of Understanding (MoU) for the supply of low-carbon and green ammonia with OCI Global in 2023, which, according to the Korean heavyweight, could help bolster the company’s endeavors toward ‘an energy transition to hydrogen economy.’
Speaking about the collaboration with JERA, Kim Yong-seok , CEO of LFC said, “As JERA is playing a leading role in establishing a clean energy supply chain in Japan, we find this collaboration with JERA very meaningful. Lotte Fine Chemical has been building a competitive clean ammonia supply chain and making proactive investment based on its over half-century experience and the largest infrastructure of ammonia distribution in Asia. Through this agreement with JERA, we will take the next step to contribute ourselves to enhance the national competitiveness of Korea.”
Chan Ki Park , Director-General, Hydrogen Economy Policy Bureau, Ministry of Trade, Industry and Energy highlighted that there are already ‘various collaborations between Korea and Japan to lead the clean hydrogen market’.
“To expand the global clean hydrogen supply chain and vitalize the hydrogen economy, cooperation between the two countries in private sectors is significant and this agreement will be the milestone to realize the cooperation .”