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SUMMARY

The Ise Bay area, where many industries are concentrated, has the future potential to become a large-scale receiving and supply base, the companies said.

By Shardul Sharma

Idemitsu Kosan and Jera have concluded a memorandum of understanding (MoU) to jointly consider establishing a hydrogen supply chain based in the Ise Bay area of Japan, they said on June 16 in a joint statement.

“On the back of demand for decarbonisation, hydrogen—which emits no CO2 when burned—is expected to be used in large quantities at power plants and in industrial areas as a next-generation replacement for fossil fuels,” the companies said. “It is essential, therefore, to develop large-scale receiving and supply bases near areas where hydrogen will be in demand.”

The Ise Bay area, where many industries are concentrated, has the future potential to become a large-scale receiving and supply base. Idemitsu is engaged in the business of receiving and refining crude oil and supplying petroleum products in the area. Jera, meanwhile, owns thermal power plants and LNG receiving terminals in the area and strives to ensure a stable supply of electricity in the Chubu region.

According to the MoU, Idemitsu and Jera will establish hydrogen receiving, storage, processing, and supply bases in the region. They will undertake a technological and economic analysis of transportation methods for hydrogen in the Ise Bay area.