JERA and LFC inked deal to develop low carbon hydrogen-based fuel value chains

Under the agreement, JERA and Lotte Fine Chemical Co., Ltd. (“LFC”) will jointly collaborate to accelerate the development of a robust and resilient value chain of low carbon fuel through the following approaches: Standardization of commercial frameworks, Optimization of each party’s ammonia portfolio by enhancing operational flexibility through joint studies and Joint efforts to discuss with both governments to establish and expand low carbon fuel value chain

To guide this effort, the government of Japan and the Republic of Korea (“ROK”) have launched “Japan-ROK Hydrogen and Its Derivatives such as Ammonia Cooperation Dialogue”, a programme designed to enhance collaboration across several key areas.

Hiroo Inoue said, “As Japan and Korea strengthen their cooperation to ensure energy security and build resilient supply chains for clean hydrogen and its derivatives, we encourage this agreement of JERA and LFC and look forward to further progress in these endeavours.”

Chan Ki Park said, “With similar industrial and energy consumption structures, various collaborations between Korea and Japan are in progress to lead the clean hydrogen market. To expand the global clean hydrogen supply chain and vitalize the hydrogen economy, cooperation between the two countries in private sectors is significant and this agreement will be the milestone to realize the cooperation”

Ryosuke Tsugaru said, ” We are pleased to have established a cooperative framework with LFC, the leading company in the chemical industry in ROK. JERA strives to position us at the forefront of the energy transition in Asia through accelerating our decarbonization efforts, not only within the power sector but also across other sectors, including Hard-to-Abate industries.”

Kim Yong-seok 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 investments 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”

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