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JERA and Samsung C&T signed a memorandum of understanding to explore a strategic collaboration across the hydrogen and ammonia value chains. The agreement aims to enhance operational resilience, strengthen security of supply, and facilitate the development of low-carbon fuels in Japan and South Korea.
In addition, both companies will analyze mechanisms to increase flexibility in the storage, transport, and marketing stages. Among the planned points is the separate management of carbon intensity attributes within tanks and other facilities.
An agreement focused on energy security
Japan and South Korea have limited domestic energy resources; therefore, both countries depend on imports to cover a significant portion of their fuel and electricity demand.
In this context, hydrogen and ammonia are gaining importance as options for diversifying energy supply and reducing emissions in the energy sector. However, their large-scale deployment requires stable supply chains, adequate infrastructure, and business models capable of competing with conventional fuels.
Likewise, the memorandum will allow JERA and Samsung C&T to study joint solutions to logistical disruptions, changes in product availability, and differences in the carbon intensity of each shipment.
Managing carbon intensity in storage
One of the technical aspects of the agreement will be the segregation of carbon attributes within the storage infrastructure. This approach can allow products with different emission levels to maintain separate traceability as they move through terminals and tanks.
Furthermore, this management can facilitate compliance with regulations, contracts, and support mechanisms related to the environmental performance of hydrogen and its derivatives.
For companies, operational flexibility will be crucial as the variety of suppliers, shipping routes, and production methods increases. The goal will be to combine physical security of supply with verifiable information on associated emissions.
JERA is preparing an integrated ammonia chain
JERA is developing Japan’s first integrated low-carbon ammonia value chain; the initiative includes production, transportation, and utilization with a target start of operations around fiscal year 2029.
The company was also selected as a supplier of low-carbon hydrogen and derivatives within the price gap support program of Japan’s Ministry of Economy, Trade and Industry.
This support aims to reduce the cost gap between low-emission fuels and conventional alternatives during the early stages of the market.
Samsung C&T expands its presence in low-carbon fuels
For its part, Samsung C&T is promoting low-carbon ammonia infrastructure and supply projects in South Korea. The company is working on a portfolio related to hydrogen, fuel transportation, and the development of supply networks.
Cooperation with JERA can expand its access to regional projects and strengthen coordination between two of the most import-dependent energy markets in Asia.
Furthermore, the image of both companies within the national hydrogen and ammonia programs allows them to participate in projects with institutional support and potential long-term demand.
Japan and South Korea seek more stable regional supply chains
The alliance responds to challenges shared by Japan and South Korea; both countries need to ensure sufficient volumes, competitive prices, and reliable logistics routes to introduce hydrogen and ammonia into their energy systems.
Irtiza Sayyed, executive director of JERA and CEO of JERA Global Energy Solutions, noted that creating strong markets requires cooperation between companies from different countries.
According to the directive, the collaboration with Samsung C&T will allow for the study of practical solutions to develop low-emission hydrogen and ammonia supply chains throughout the region.
The agreement aligns with JERA’s decarbonization strategy
JERA maintains its objective of achieving net-zero CO₂ emissions in its national and international operations by 2050.
To advance towards that goal, the company plans to expand its partnerships in the production, transport, storage and use of hydrogen and ammonia.
Therefore, the memorandum with Samsung C&T represents a step aimed at reducing logistical and commercial risks before the expansion of these fuels in Japan, South Korea and other Asian markets.
Source and photo: Jera
