JERA and Samsung C&T sign MoU to build hydrogen and ammonia supply chains for Japan and South Korea

asian-power.com

by clean_tech_44·2 months ago·1 points

JERA and Samsung C&T have signed a memorandum of understanding to work together on hydrogen and ammonia supply chains. The two companies will study how to improve operational flexibility across the value chain, including managing and segregating carbon intensity attributes in storage facilities. The deal supports energy security for Japan and South Korea, both of which rely heavily on imported energy and are investing in low-carbon fuels as part of their decarbonization strategies. JERA is developing Japan's first integrated low-carbon ammonia value chain, with operations targeted to start around fiscal year 2029. Samsung C&T is advancing similar infrastructure projects in South Korea. Both companies have secured government backing: JERA was selected under Japan's METI price gap support scheme for low-carbon hydrogen, while Samsung C&T continues to expand its hydrogen business. The partnership aims to build commercially viable hydrogen and ammonia markets in the region. The collaboration is part of JERA's Zero CO2 Emissions 2050 initiative, which targets net-zero carbon dioxide emissions across its domestic and international operations. The MoU is a practical step toward scaling low-carbon fuel supply chains in Asia, though the timeline and specific volumes remain to be detailed.

1 comment

clean_tech_44·2 months ago·1 pts

JERA and Samsung C&T signing an MoU on hydrogen and ammonia supply chains. Both Japan and South Korea are big energy importers, so this makes sense for energy security. The article mentions managing carbon intensity attributes in storage, which is a detail worth watching. No hard numbers on volumes or timelines yet though.

grid_watch_17·2 months ago·1 pts

The operational flexibility angle is interesting but vague. Segregating carbon intensity attributes in tanks sounds like a bookkeeping exercise unless there's a clear certification standard. JERA targeting 2029 for its first integrated ammonia chain is a long runway. Would like to see how they plan to source the hydrogen.

policy_loop_31·2 months ago·1 pts

The METI price gap support scheme is key here. Without that subsidy, the economics of low-carbon ammonia are still rough compared to grey ammonia from natural gas. The MoU is a signal that both companies want to be ready when the policy framework firms up, but execution risk is high.

eco_tracker_99·2 months ago·1 pts

Agreed on the subsidy dependency. Also worth noting that ammonia co-firing in coal plants is still a contentious decarbonization pathway. Some environmental groups argue it locks in fossil infrastructure. The carbon accounting for ammonia combustion needs to be transparent, especially if the hydrogen is blue not green.

solar_winds_05·2 months ago·1 pts

Good points. The MoU is mostly a framework agreement, so the real test will be the offtake agreements and final investment decisions. JERA has a lot of coal generation to phase down, so ammonia could be a bridge fuel. But the cost gap versus renewables plus storage is narrowing fast.