Japanese power producer Jera and South Korean trading house Samsung C&T plan to collaborate on building hydrogen and ammonia value chains and optimise their portfolios of these carbon-neutral fuels, Jera said today.
Jera and Samsung C&T signed the two-year initial agreement on 6 July. The deal involves exploring improvements to operational flexibility in ammonia handling and the potential for ammonia trading based on market conditions. The two firms also aim to work together to develop a system to manage operational emissions from infrastructure. The firms did not disclose a detailed schedule.
Jera also formed partnerships with South Korean firms Posco and Lotte Chemical in 2024 to build hydrogen and ammonia value chains.
The agreements align with the Japanese and South Korean governments' joint target to enhance collaboration to build hydrogen and ammonia supply chains. They plan to develop a methodology to calculate greenhouse gas emissions through research at overseas manufacturing sites. The countries also aim to establish an international standard for hydrogen refuelling stations and ensure the safe handling of these fuels and feedstocks. The countries aim to boost production and consumption of hydrogen and ammonia, especially in the mobility, power generation and other hard-to-abate industry sectors.
Demand for hydrogen and ammonia in South Korea could be lower than previously expected after the government revised its plan for a second clean hydrogen power generation bidding market tender. It reduced tender volumes from 3 TWh/yr to 500 GWh/yr and excluded ammonia co-firing as an option because of plans for an accelerated coal phase-out.
But Jera still decided to work with Samsung C&T because the latter was selected to receive financial support to develop hydrogen pathways under South Korea's Clean Hydrogen Portfolio Standard scheme. Samsung C&T has sufficient incentives and support to continue promoting the use of hydrogen and ammonia, despite the potential fall in demand for these fuels in South Korea, Jera said.
