Jera/Lotte Fine Chemical tie-up for low-carbon hydrogen/ammonia in Asia
Japanese energy firm Jera and South Korean chemical firm Lotte Fine Chemical (LFC) 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 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 standardisation of commercial frameworks, the optimisation 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 South Korea 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’.
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 its net zero goal. Earlier this year, Jera released a new growth plan focused on three main business pillars, namely LNG, renewables and hydrogen & ammonia.
Meanwhile, Lotte signed a MoU for the supply of low-carbon and green ammonia with OCI Global in 2023, which is in line with its energy transition to hydrogen economy.
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.”
