VINACHEM

Japan's largest power generation company JERA has signed a joint collaboration agreement with South Korea's Lotte Fine Chemical to develop low carbon fuel supply chains involving hydrogen and ammonia, JERA said Aug. 23.

The agreement comes against the backdrop of Japan and Korea aiming to strengthen their cooperation to ensure energy security and build resilient "value chains" for low carbon hydrogen and its derivatives, according to the statement.
The companies will strive for standardization of commercial frameworks and optimization of low-carbon ammonia production by enhancing operational flexibility through joint studies, JERA said.

They will also discuss with the Japanese and South Korean governments for establishing and expanding low carbon fuel chains, it added.

The nations launched 'Japan-ROK Hydrogen and Its Derivatives such as Ammonia Cooperation Dialogue,' a program designed to enhance collaboration across several key areas, JERA said.

"With similar industrial and energy consumption structures, various collaboration between Korea and Japan is in progress to lead the clean hydrogen market," Chan Ki Park, Director-General, Hydrogen Economy Policy Bureau, Ministry of Trade, Industry and Energy in South Korea said.

"This agreement will be the milestone to realize the cooperation."

Decarbonization

JERA is accelerating decarbonization in the power sector and also targeting other sectors, including those in the hard-to-abate industries, it said.

LOTTE Fine Chemical, a specialty chemical company, mainly manufactures ammonia and its derivatives, and is supported by its large infrastructure of ammonia distribution in Asia, according to the statement.

JERA produces about 30% of all electricity in Japan and has a target of zero CO2 emissions from its domestic and overseas businesses by 2050, its website says.

JERA completed a nearly three-month-long 20% ammonia cofiring test at its 1-GW No. 4 coal-fired unit at the Hekinan thermal power plant June 26, marking the world's first cofiring of ammonia at a large commercial coal-fired power plant.

The company also said it will mark its foray into the ammonia bunkering business with the supply of ammonia as a marine fuel to a tugboat in Yokohama Port.

Platts, part of S&P Global Commodity Insights, assessed Japan hydrogen produced via alkaline electrolysis (including capex) at $6.88/kg Aug. 22, up 2.99% on the month.

South Australia hydrogen produced via alkaline electrolysis (including capex) was assessed at $4.11/kg Aug. 21, up 18.79% from a month ago.   – Source: Platts –