PETRONAS and JERA to collaborate on ammonia and hydrogen initiatives

Author: Richard Ewing

2021/02/09

LONDON (ICIS)--Malaysia’s PETRONAS on Tuesday agreed a Memorandum of Understanding (MoU) with Japanese energy major JERA to cooperate on low-carbon energy initiatives including ammonia and hydrogen.

The pact will see the pair intensify collaboration in the supply chains for ammonia and hydrogen fuels while continuing to advocate for the use of LNG.

"This builds upon PETRONAS’ position as one of the world’s largest LNG producers, experience as a reliable producer of ammonia as well as the establishment of the company’s hydrogen business in November 2020," the company noted in a statement.

PETRONAS is already producing blue hydrogen as a by-product from its facilities and will be "exploring the commercial production of green hydrogen in the near future".

PETRONAS' EVP of gas and new energy, Adnan Zainal Abidin, said, “We are proud to elevate our four-decade long relationship with JERA which will not only see us explore emerging low-carbon energy sources such as ammonia and hydrogen but also to strengthen our LNG partnership.

“Importantly, the scope of collaboration also opens up opportunities across PETRONAS’ integrated value chain and beyond the borders of Japan as we seek to grow the use of low-carbon energy sources globally."

Late last year, PETRONAS announced its goal of achieving net zero carbon emissions by 2050 as part of a holistic approach to sustainability and to grow the business in ways that contribute positively to society and the environment.

Around the same time, JERA established the "JERA Zero CO2 Emissions 2050", a strategy guided by advances in decarbonisation technology, economic rationality and consistency with Japanese government policies.

"As part of JERA’s net zero emissions journey, the company will be looking into closing inefficient coal-fired generators in Japan by 2030, gradually increase mixed combustion of fossil fuels, ammonia and hydrogen at its thermal power plants and promote renewable energy development," PETRONAS' statement added.

In the LNG space, PETRONAS and JERA will work together to grow the use of natural gas as a cleaner marine fuel through LNG bunkering solutions, in support of International Maritime Organization (IMO) regulations on greenhouse gas emissions.

"Through the MoU, PETRONAS and JERA will explore the establishment of a global bunkering supply network, leveraging on both companies’ experience in LNG bunkering," PETRONAS concluded.