Japan's largest power company cooperates with South Korean chemical giant to develop clean hydrogen fuel

On August 22, Japan's JERA Co., Ltd. and Lotte Fine Chemicals signed a joint cooperation agreement to realize a low-carbon fuel value chain. According to the agreement, JERA and Lotte Fine Chemicals will work together to accelerate the development of a strong and resilient low-carbon fuel value chain through the following ways:

· Standardization of business frameworks

· Improve operational flexibility through joint research and optimize the ammonia product portfolio of each party

· Discuss the establishment and expansion of a low-carbon fuel value chain with the two governments

To this end, the Japanese and Korean governments launched the "Japan-Korea Hydrogen and Derivatives Cooperation Dialogue" to strengthen cooperation in several key areas.

Hiroo Inoue, Director of the Energy Efficiency and Renewable Energy Division at Japan's Agency for Natural Resources and Energy, said: "As Japan and South Korea strengthen cooperation to ensure energy security and build a resilient supply chain for clean hydrogen and its derivatives, we encourage JERA to reach this agreement with Lotte Fine Chemicals and look forward to further progress in these efforts."

Chan Ki Park, Director of the Hydrogen Economy Policy Bureau at the Ministry of Trade, Industry and Energy of South Korea, said: "Due to similar industrial and energy consumption structures, South Korea and Japan are conducting various cooperation to lead the clean hydrogen market. In order to expand the global clean hydrogen supply chain and revitalize the hydrogen economy, cooperation between the two countries in the private sector is of great significance, and this agreement will be a milestone in achieving cooperation."

Ryosuke Tsugaru, Chief Low Carbon Fuel Officer of JERA, said: "We are pleased to establish a cooperation framework with Lotte Fine Chemicals, a leader in the Korean chemical industry. JERA is committed to putting us at the forefront of Asia's energy transformation by accelerating decarbonization efforts, not only in the power industry, but also in other industries, including those that are difficult to abate."

Kim Yong-seok, CEO of Lotte Fine Chemicals Said:“We believe that cooperation with JERA is very meaningful as JERA plays a leading role in establishing a clean energy supply chain in Japan. Lotte Fine Chemicals has been committed to building a competitive clean ammonia supply chain and actively investing with its more than half a century of experience and Asia’s largest ammonia distribution infrastructure. Through this agreement with JERA, we will take the next step and contribute to enhancing Korea’s national competitiveness.”

JERA will continue to take the lead in strengthening and diversifying the low-carbon fuel value chain regionally, nationally and internationally, and contribute to global decarbonization and solving energy problems, especially in Asia.