JERA Reveals 3 Decarbonization Plan Pillars: LNG, Renewables, Hydrogen & Ammonia

JERA has developed a new growth strategy toward achieving its 2035 and 2050 zero-emission goals, leveraging three business pillars—LNG, renewables, and hydrogen and ammonia—to ensure agility and efficiency and reach energy sustainability, affordability, and stability. Each pillar can be customized to offer tailored solutions for the specific geographic and economic characteristics of its customers.

JERA also established goals corresponding to LNG, renewables, and hydrogen and ammonia by fiscal year 2035.

LNG: JERA set a target for more than 35 million tons of transaction volume as a major integrated value chain player.

Renewables: The company will bolster its renewables pillar with a total 20 GW of capacity.

Hydrogen & Ammonia: JERA targets approximately 7 million tons of handling volume and will further develop the international hydrogen and ammonia value chain.

In addition to strengthening its energy pillars, JERA organized its work into business development, optimization, and operations and maintenance.

“At JERA, we are not just adapting to the evolving global energy landscape; we are actively setting the pace,” said Yukio Kani, Global CEO and Chair. “With our new growth strategy, we are positioning ourselves at the forefront of the energy transition. Our vision will be made possible through strategic collaborations with our global partners. Built on mutual goals and a culture of diversity and openness, we and our partners will join forces to embark on a journey to transform the energy sector.”

JERA and CF Industries entered a joint development agreement in April 2024 to assess the development of green, low-carbon ammonia production capacity and evaluate a possible agreement to construct a 1.4 million metric ton capacity low-carbon ammonia plant at the Blue Point Complex in Louisiana.

“We are pleased to expand our relationship with JERA as our companies advance leading-edge decarbonization initiatives that will help JERA and Japan achieve their decarbonization goals,” said Tony Will, President and CEO, CF Industries Holdings. “We believe that JERA’s projects, which represent the first meaningful volume of what we believe will be substantial global demand for low-carbon ammonia as an energy source, will demonstrate the significant contribution ammonia can make to meet the decarbonization goals of hard-to-abate industries. We look forward to continuing to work closely with JERA and other stakeholders in Japan as regulatory requirements and government incentives regarding low-carbon ammonia are finalized.”

JERA is examining a 48% ownership stake in the project and an agreement to procure more than 500,000 metric tons of low-carbon ammonia per year—an effort to satisfy demand for low-carbon fuels in Japan. Both CF Industries and JERA previously signed a memorandum of understanding to explore the joint project development, sales, and purchase of low-carbon ammonia. The companies plan to execute a final investment decision for the project within a year, priming the plant for ammonia production by 2028.

“We are pleased to further advance our partnership with CF Industries,” said Kani. “Finding cutting-edge solutions to the world's energy issues requires commitment and partnership. With JERA's dedication to low-carbon fuel development and CF Industries' expertise as one of the leading ammonia producers, we are confident in making tangible progress toward realizing a low-carbon ammonia value chain, and ultimately ensuring a decarbonized energy supply that is sustainable, affordable, and stable."