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JERA Co., Inc. (“JERA”), Kyushu Electric Power Co., Inc. (“Kyushu Electric”), and Chugoku Electric Power Co., Inc. (“Chugoku Electric”) have concluded a memorandum of understanding (“MOU”) 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, and Chugoku 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 in cooperation with companies that are motivated to realize a decarbonized society.
The MOU stipulates that the three 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
- Promoting policy support and rulemaking for hydrogen and ammonia
- Identifying other domestic electric power companies to participate in this collaboration
Consideration of potential collaboration by the three 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.