JERA Co., Inc. (“JERA”) and Lotte Fine Chemical Co., Ltd. (“LFC”) have entered into a Joint Collaboration Agreement focused on creating sustainable low carbon fuel value chains. This strategic partnership will drive the development of a resilient value chain by standardizing commercial frameworks and optimizing ammonia portfolios, leveraging joint operational flexibility.

Through comprehensive joint studies, both companies will explore innovative solutions to enhance efficiency. Additionally, JERA and LFC will actively engage with government authorities to establish and expand the low carbon fuel value chain, positioning themselves as leaders in the global transition towards sustainable and environmentally friendly energy sources.

To guide this initiative, the governments of Japan and the Republic of Korea (ROK) have introduced the "Japan-ROK Hydrogen and Its Derivatives such as Ammonia Cooperation Dialogue." This program aims to strengthen collaboration in critical areas related to hydrogen and ammonia, fostering closer ties and advancing shared goals in clean energy development.

JERA will maintain its leadership role in enhancing and diversifying low-carbon fuel value chains on regional, national, and international levels. The company is committed to advancing global decarbonization efforts and addressing energy challenges, with a particular focus on Asia. Through its ongoing initiatives, JERA aims to drive significant progress in sustainable energy solutions and contribute meaningfully to the reduction of carbon emissions worldwide.

Hiroo Inoue, Director-General of the Energy Efficiency and Renewable Energy Department at Japan’s Agency for Natural Resources and Energy, expressed strong support for the collaboration between JERA and LFC. He highlighted that this agreement is a significant step as Japan and Korea work together to enhance energy security and establish robust supply chains for clean hydrogen and its derivatives. Inoue emphasized that such partnerships are crucial for advancing these goals and expressed optimism about the future progress in these efforts.

Chan Ki Park, Director-General of the Hydrogen Economy Policy Bureau at South Korea's Ministry of Trade, Industry, and Energy emphasized the importance of the agreement between Korea and Japan. He noted that both countries, with their similar industrial and energy consumption structures, are advancing various collaborations to lead the clean hydrogen market. Park highlighted that such private sector cooperation is crucial for expanding the global clean hydrogen supply chain and energizing the hydrogen economy.

Ryosuke Tsugaru, Chief Low Carbon Fuel Officer at JERA, expressed satisfaction with the newly established partnership with LFC, a leading chemical industry company in South Korea. Tsugaru highlighted JERA's commitment to leading the energy transition in Asia by advancing decarbonization efforts not just within the power sector but also across challenging industries. This collaboration aims to position JERA at the forefront of the shift towards low-carbon energy solutions.

Kim Yong-seok, CEO of LFC, emphasized the significance of the partnership with JERA, noting JERA's leadership in developing a clean energy supply chain in Japan. Kim highlighted Lotte Fine Chemical's strong track record in building a competitive clean ammonia supply chain, leveraging over fifty years of experience and extensive infrastructure in Asia. He expressed that this collaboration will further enhance South Korea's national competitiveness by advancing their clean ammonia capabilities and contributing to the broader energy transition.