Japan's foremost power utility, JERA, announced its intention to invest 5 trillion yen ($32.4 billion) over the next decade in renewable energy and emerging fuels like hydrogen and ammonia, alongside liquefied natural gas (LNG).
Chairman Yukio Kani highlighted the necessity of maintaining a robust LNG handling scale, stating, “Without a certain LNG handling scale, it will be difficult to have a global presence that can constantly bring flexible supply to Japan.”
JERA's ambitious targets include maintaining annual LNG transaction volumes above 35 million metric tons by fiscal year 2035, while aiming to boost renewable energy capacity to 20 gigawatts from the current 5 GW and handling volumes of hydrogen and ammonia to 7 million tons from none currently.
Moreover, JERA plans to phase out inefficient coal-fired power plants by fiscal 2030 and convert all remaining coal-fired power generation to ammonia by the 2040s, with Chairman Kani emphasizing the importance of eliminating coal usage entirely.
Regarding the company's financial outlook, President Hisahide Okuda projected a substantial increase in net profit to 350 billion yen by fiscal 2035, up from the expected 200 billion yen profit in fiscal 2025.
Okuda underscored the multifaceted approach JERA is undertaking, stating, “We want to build a clean energy platform by combining zero emissions thermal power with renewable energy, and expand it to Asia.”
However, Okuda emphasized the immediate importance of prioritizing LNG over coal in Asia, asserting, “Expanding the use of LNG, instead of coal, in elsewhere in Asia is key to promoting a low-carbon society.”
