AboitizPower is the Philippines’ leading provider of renewable energy, advancing business and communities towards A Better Future.
PBBM supports AboitizPower and JERA push for greener fuels in the Philippines
February 16, 2023
Tokyo, Japan — On Friday, February 10, Aboitiz Power Corporation (AboitizPower), the holding company of power-related investments of the Aboitiz Group, signed a memorandum of understanding (MOU) with JERA Co., Inc. (JERA), Japan’s largest power generation company, to jointly assess the potential for greener fuels in power generation. The MOU signing was done in the presence of President Ferdinand “Bongbong” R. Marcos Jr. together with key officials from the Philippine Government.
Under the MOU, AboitizPower and JERA outlined collaborative efforts in assessing the feasibility of ammonia co-fired power generation and further development of the ammonia and hydrogen value chains in the Philippines. This will support the decarbonization efforts of AboitizPower and the Philippines.
The MOU was signed by AboitizPower Chairman Sabin Aboitiz and JERA President Satoshi Onoda.
Together with its partners, AboitizPower is the Philippines’ largest owner and operator of renewable energy (RE) based on installed capacity. Through this recent undertaking, AboitizPower continues to provide concrete efforts to the country’s transition to a sustainable energy future with its efforts in the research and generation of renewable energy. Its impact will be felt beyond energy stability and emission reduction, as the collaboration brings about the potential of developing the Philippines as a hub and leader in the region for greener fuels.
“By joining forces in the pursuit of greener fuels, our two companies are not only advancing the cause of sustainability, but also paving the way for a cleaner and more vibrant future. Ammonia offers a compelling solution for decarbonizing the power sector, and by looking into it, we are taking a step towards developing the infrastructure needed to support the ammonia and hydrogen value chains,” said Mr. Aboitiz.
JERA operates in more than 10 countries with a total portfolio of 80 gigawatts (GW). This recent MOU leverages JERA’s wealth of knowledge and experience to effectively fuel the decarbonization and sustainability efforts of AboitizPower and the Philippines. This is in line with JERA’s mission to provide cutting-edge solutions to the world’s energy issues and its vision of being a global leader in liquified natural gas (LNG) and renewables to spark the transition to a clean energy economy.
Around the world, there have been increasing developments in the use of large-scale hydrogen production projects. Similar to hydrogen, ammonia is an alternative fuel that does not emit any carbon dioxide when it is burned. As it is easier to handle than liquified hydrogen, it is expected to be used as a hydrogen energy carrier. Through research and development between AboitizPower and JERA, there may be a significant reduction in costs in clean power generation by promoting industrial utilization and building a large-scale value chain.
“JERA is focused on providing cutting-edge solutions to the world’s energy issues and strengthening the value chains for greener fuels such as ammonia and hydrogen. Through this collaboration, we will support Aboitiz's power decarbonization efforts while also considering additional opportunities for advancing technology development in the Philippines. This MOU allows JERA to leverage its experience and capabilities to support both AboitizPower and the Philippines to reach their emissions targets. We are going to share the Realization of a Low-Carbon Society as a Global Leader Laying the Foundation for the Future of Energy,” said JERA President Satoshi Onoda.
If the technology is applied to existing coal-fired power plants, where appropriate, carbon dioxide emissions may be reduced by up to 50%. There will also be a significant impact on the Philippine economy with the introduction of these technologies, owing to the construction of import terminals, storage facilities, power station retrofits, and the like.
As the Aboitiz Group undergoes its Great Transformation to become the Philippines’ first Techglomerate, it is investing in innovation and technology aligned with its sustainability vision.
JERA has been a strategic partner of AboitizPower since 2021, when the Japanese firm fully acquired a 27% stake in AboitizPower (which included a 1.99% stake from the Aboitiz family’s privately held parent company, Aboitiz & Company), unlocking international capabilities and expertise. Their partnership is focused on the exploration of new-generation technologies, helping AboitizPower achieve its 10-year renewable energy expansion to increase its RE capacity by 3,700 megawatts (MW) by 2030.
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