Japanese LNG importer Jera has just concluded a memorandum of understanding (MoU) with Electricity Generating Public Company Limited (EGCO), a Thai power generation company, to collaborate on developing an LNG supply chain, and a large-scale supply chain for hydrogen and ammonia in Thailand.
According to Jera, there is a demand for decarbonization and a stable energy supply that supports economic growth. Gas-fired power generation—which emits less CO2 than power generation using other fossil fuels—can be a flexible supplement to intermittent renewable energy.
The Japanese company considers that hydrogen and ammonia—which do not emit CO2 during combustion—have great potential as next-generation fuels that will contribute to the decarbonization of thermal power generation. JERA is working to develop zero-emission thermal power generation plants and establish a large-scale supply chain for hydrogen and ammonia.
JERA has contributed to a stable supply of energy in Thailand as a shareholder with an approximate 12% stake in EGCO through TEPDIA Generating B.V. In Thailand, where energy demand is expected to continue to increase in line with economic growth, JERA believes that pursuing business opportunities to develop LNG value-chain projects and to establish hydrogen and ammonia supply chains will enable it to contribute to expanding its earnings base, improving the reliability of its supply of LNG and next-generation fuels, and securing economic efficiency.