Japan’s major JERA has concluded a joint collaboration agreement with South Korea-based POSCO International to realize low-carbon fuel value chains.
Under the agreement, the parties will jointly collaborate to accelerate the development of a value chain of low-carbon fuel through the following approaches:
To guide this effort, JERA said the governments of Japan and Korea launched “Japan-ROK Hydrogen and Its Derivatives such as Ammonia Cooperation Dialogue,” a program designed to enhance collaboration across several key areas.
Ryosuke Tsugaru, Chief Low Carbon Fuel Officer of JERA, commented: “We are pleased to have established another cooperative framework with POSCO INT’L, a subsidiary of a major ROK conglomerate with a significant presence in the steel industry. JERA strives for positioning us at the forefront of the energy transition in Asia through accelerating our decarbonization efforts, not only within the power sector but also across other sectors, including Hard-to-Abate industries.”
Hyeon Park, Executive Vice President and Head of Energy Business Development Group of POSCO, stated: “We are pleased to announce our strategic partnership with JERA, a leading company in Japan’s power industry. We believe that this partnership between POSCO INT’L and JERA will be beneficial to our efforts in transitioning to low carbon energy.”
To note, JERA aims to contribute to global decarbonization and to solving energy issues, particularly in Asia. The company is involved in multiple low-carbon fuel projects and partnerships, one of the latest being with South Korean Lotte Fine Chemical.
In May 2024, 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.
Furthermore, the company established a new business, JERA Cross , intending to combine the company’s energy, digital and business transformation capabilities to accelerate corporate “green transformation.”