PETRONAS has entered into an MOU with JERA Co. Inc., that will see both companies collaborate on a wide range of low-carbon energy initiatives, covering LNG, ammonia and hydrogen.

Pursuant to the agreement, PETRONAS and JERA will intensify collaboration in the supply chains for ammonia and hydrogen fuels while continuing to advocate for the use of LNG. This builds upon PETRONAS’ establishment of the company’s hydrogen business in November 2020.

The signing of the MOU between PETRONAS and JERA is a result of both companies’ shared vision of achieving net zero carbon emissions. In November 2020, PETRONAS announced its aspiration to achieve net zero carbon emissions by 2050 as part of its approach to sustainability and to grow the business in ways that contribute positively to society and the environment.

JERA, around the same time, established the 'JERA Zero CO2 Emissions 2050' in October 2020, which are guided by advances in decarbonization technology, economic rationality, and consistency with Japanese government policies. As part of JERA’s net zero emissions journey, the company will be looking into closing inefficient coal-fired generators in Japan by 2030, gradually increase mixed combustion of fossil fuels, ammonia and hydrogen at its thermal power plants and promote renewable energy development.

Today, PETRONAS is already producing blue hydrogen as a by-product from its facilities and will be exploring the commercial production of green hydrogen in the near future.