Japanese utility JERA has signed an MOU with Thailand's state-owned Electricity Generating Authority (EGAT) to explore developing low-carbon hydrogen and ammonia supply chains in the country. The partnership will assess technical, economic, and commercial feasibility, along with opportunities for power generation and fuel substitution. JERA is already working on Japan's first integrated ammonia value chain, targeting completion by fiscal year 2029. The move reflects growing interest in hydrogen and ammonia as alternatives for decarbonizing power generation and industrial heat in Southeast Asia. Thailand's energy mix could see significant shifts if these fuels become cost-competitive. The study phase will also look at policy and regulatory factors, which will be key to determining whether the project moves forward. For now, this is an early-stage feasibility assessment with no concrete timeline or capacity targets. The real test will be whether the economics pencil out compared to direct electrification and renewables, especially given the efficiency losses in hydrogen production and transport.
