Petronas and Jera elevate partnership on low-carbon energy initiatives

The scope of collaboration also opens up opportunities across Petronas’ integrated value chain and beyond the borders of Japan


PETROLIAM Nasional Bhd (Petronas) has entered into a memorandum of understanding (MoU) with Jera Co Inc to collaborate on a wide range of low-carbon energy initiatives, covering liquefied natural gas (LNG), ammonia and hydrogen.

“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,” Petronas executive VP and CEO of gas and new energy Adnan Zainal Abidin said in a statement yesterday.

He added that the scope of collaboration also opens up opportunities across Petronas’ integrated value chain and beyond the borders of Japan as the company seeks to grow the use of low-carbon energy sources globally.

The MoU is a result of both companies’ shared vision of achieving net zero carbon emissions.

Last November, Petronas announced its aspiration to achieve “Net Zero Carbon Emissions by 2050” as part of its holistic approach to sustainability and to grow the business in ways that contribute positively to society and the environment.

Japan’s largest power generation company, Jera, around the same time, established the “Jera Zero CO2 Emissions 2050” in October 2020, which are 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.

Pursuant to the MoU, Petronas and Jera will 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 and the establishment of the company’s hydrogen business in November.

To date, 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.

Coupled with its inherent geographical advantage, expanding renewables portfolio, strong partnerships with customers and continued focus on research and development of electrolyser technology, Petronas is well-poised to be a competitive low-carbon and green hydrogen solutions provider.

In the LNG space, Petronas and Jera will be collaborating to grow the use of natural gas as a cleaner marine fuel through LNG bunkering solutions, in support of International Maritime Organisation regulations on greenhouse gas emissions.

The state-owned oil firm and Jera will explore the establishment of a global bunkering supply network, leveraging on both companies’ experience in LNG bunkering.

Just last November, Petronas had completed its maiden LNG bunkering operation at Pasir Gudang in Johor whereas Jera had completed its first LNG bunkering operation in Japan in October.