By 2035, the energy giant plans to invest more than $6 billion in hydrogen (H2) initiatives.
JERA, Japan’s leading power generation company, revealed its ambitious strategy to heavily invest in ammonia (NH3) and hydrogen fuel supply. With a commitment ranging from ¥1 trillion to ¥2 trillion ($6.4 billion to $12.8 billion), the company aims to bolster the production of H2 and NH3.
The company plans to produce both blue and green H2 and NH3.
As per the company’s announcement, both ammonia and hydrogen fuel supply play crucial roles in Japan’s decarbonization efforts. Furthermore, it emphasized that both H2 and NH3 are essential for decarbonizing the country’s grid, primarily due to land constraints and the intermittent nature of renewable energy sources.
JERA doesn’t oppose the adoption of renewable energy like solar and wind power. Rather, the company highlights that Japan’s specific needs and available resources don’t make renewable energy a sole and practical solution for meeting the nation’s power demands.
A dependable hydrogen fuel supply can ensure consistent energy availability.
Given Japan’s limited land for expansive solar or wind energy installations, and the inherent intermittency of these sources due to their reliance on sunlight and wind, JERA contends that H2 and NH3 will play a crucial role in meeting the country’s energy demands with maximum cleanliness.
The company will prioritize the production of blue and green H2. Blue hydrogen, derived from natural gas, does generate carbon emissions, but the process involves capturing and storing these emissions to significantly diminish its greenhouse gas footprint.
Meanwhile, green H2 is produced through water electrolysis powered by renewable sources like solar and wind energy.
Pioneering the Hydrogen Industry by 2035
JERA has outlined its ambitious plan to bolster the ammonia and hydrogen supply chain, aiming to produce approximately 7 million metric tons of H2 by 2035. This strategic move positions the company to spearhead the global hydrogen and ammonia value chain.
In addition to focusing on hydrogen production, JERA is also venturing into NH3 for Japanese power generation, aiming to enhance profitability by exporting either or both energy sources to companies in Germany and Singapore. Both nations are actively pursuing the development of a hydrogen economy but rely on imports to meet their energy demands.
Moreover, JERA plans to implement the co-firing of 40 percent H2 at its US gas-fired power plants located in Linden, New Jersey.