Japan’s JERA to shut all inefficient coal power plants by 2030

LONDON (ICIS)–Japan’s largest power generator JERA on Tuesday unveiled plans to shut all inefficient coal-fired plants by 2030 and use “greener” fuels such as ammonia and hydrogen in its various thermal power plants.

Thermal power generation using fossil fuels accounts for about 80% of Japan’s electricity demand, but about 40% of its total CO2 emissions, JERA said.

“Reducing CO2 emissions from thermal power generation is essential to realising a low-carbon society,” the Tokyo-headquartered company added.

“To further accelerate its initiatives so far, and to clarify its long-term vision, JERA has established ‘JERA Zero CO2 Emissions 2050’ [roadmap], with the goal of achieving zero CO2 emissions by 2050.

“The main pillars of the roadmap are the shutdown of all inefficient coal power plants (supercritical or less) by 2030, and a gradual increase in the ratio of mixed combustion of fossil fuels, ammonia, and hydrogen at thermal power plants.

“Going forward, JERA will gradually develop, the roadmap in greater detail based on relevant conditions such as government policies.”

The power producer did not say how many coal-fired plants will be shuttered permanently, or from where it would source ammonia or hydrogen given the country is not a major manufacturer of either product.

According to the International Fertilizer Association (IFA), Japan’s annual ammonia production capacity is around 815,000 tonnes, down 20% from 2014.

In April of this year, Australian energy group Woodside signed a deal with JERA, Marubeni Corp, and IHI Corp to examine the large-scale export of hydrogen as ammonia for decarbonising coal-fired power generation in Japan.

The study is exploring the construction and operation of world-scale ammonia facilities and the optimisation of supply chain costs.