Japan's Jera, Kyushu partner on decarbonisation, energy supply
SUMMARY
The companies have also signed a deal to transfer part of Jera’s equity stake in Goi United Generation which is moving forward with the replacement of the Goi thermal power station, to Kyushu Electric.
By Shardul SharmaJera and Kyushu Electric Power Co., Japan's two largest power companies, have signed a memorandum of understanding (MOU) to collaborate on decarbonisation and energy supply, the companies said on October 23.
The MOU covers a range of areas including joint development of new power sources, further strengthening of cooperation in making fuel supply and demand adjustments and acceleration of discussions aimed at building and expanding fuel hydrogen and ammonia supply chains
To date, Jera and Kyushu Electric have shared ownership of LNG carriers and, through group companies, cooperated in making fuel supply and demand adjustments through LNG trading. In addition, since FY 2022, they have also moved forward with discussions aimed at building and expanding supply chains for hydrogen and ammonia for use as fuels in power generation.
In addition, the companies have signed an agreement to transfer part of Jera’s equity stake in Goi United Generation which is moving forward with the replacement of the Goi thermal power station, to Kyushu Electric. The transfer is expected to be completed in October after going through the necessary formalities.
The Goi thermal power station replacement plan is a project to replace the six aging gas-fired steam power units at the Goi thermal power station in Chiba Prefecture, Japan, with three new gas-fired combined-cycle units. The new units will have a combined capacity of 2.34 GW, which is about the same as the capacity of the existing units.
The project is expected to be completed in 2024. Jera and ENEOS currently own the project having an ownership stake of 66.67% and 33.33% respectively.
