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JERA: Energy Transition Growth Strategy

Posted on by darion

JERA Co. Inc. recently announced a new development strategy that integrates three strategic pillars: liquefied natural gas (LNG), renewable energies and hydrogen and ammonia. This approach aims to address global energy challenges while ensuring sustainable development, energy availability and stability.

Ambitious goals for 2035

By fiscal year 2035, JERA has set specific targets for each of its three pillars:

  • LNG the goal is to achieve a transaction volume of over 35 million tons.
  • Renewable energies: 20 GW capacity development.
  • Hydrogen and ammonia Hydrogen and ammonia: manage approximately 7 million tons.

Optimized organization

To achieve these goals, JERA has divided its operations into three key areas: business development, optimization and operation and maintenance (O&M). This structure is supported by leading experts from Japan and around the world, working closely with business groups to provide the flexibility and scalability required for cross-regional collaboration.

Financial strategy and investments

JERA also presented its financial strategy with clear objectives:

  • Consolidated net income of 350 billion yen.
  • EBITDA of JPY 700 billion.
  • Total investment value of JPY 5 trillion (JPY 1-2 trillion for each business pillar) with the possibility of flexible allocation according to external changes.

Environmental commitments

JERA has committed to reducing CO2 emissions intensity by 20% by 2030, total CO2 emissions by 60% by fiscal year 2035, and achieving zero CO2 emissions by 2050. To achieve these goals, the company plans to phase out inefficient coal-fired power plants by 2030. and convert 100% of remaining coal-fired power plants to ammonia by the 2040s.

Global collaboration and innovation

JERA’s strategy is also based on strategic cooperation with global partners. Yukio Kani, global CEO of JERA, emphasized that the company will not simply adapt to the global energy landscape. Cooperation based on common goals and a culture of diversity and openness is essential for the transformation of the energy sector. JERA’s new development strategy, focusing on LNG, renewable energies and hydrogen and ammonia, is a step towards a sustainable energy transformation.

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