Japan’s power firm and LNG trader Jera and compatriot Kyushu Electric Power have signed a deal to work on decarbonization and energy supply and to transfer a stake in the Goi LNG power plant.
Jera said in a statement issued on Monday that the memorandum of understanding further strengthens and expands the existing relationship between the two firms.
To date, Jera and Kyushu Electric have shared ownership of LNG carriers and, through group companies, cooperated in making fuel supply and demand adjustments through LNG trading, it said.
In addition, since fiscal 2022, the two firms also moved forward with discussions aimed at building and expanding supply chains for hydrogen and ammonia for use as fuels in power generation.
Under the new deal, the two firms plan joint development of new power sources including renewable energy, further strengthening of cooperation in making fuel supply and demand adjustments, and to accelerate discussions aimed at building and expanding fuel hydrogen and ammonia supply chains, Jera said.
Goi LNG power plant
Moreover, as part of the development of new power sources under this memorandum of understanding, the companies have signed an agreement to transfer part of Jera’s equity stake in Goi United Generation, which is moving forward with replacement of the Goi thermal power station, to Kyushu Electric.
Jera expects to complete the transfer during October.
Following completion of the transfer, the ownership ratio in the power plant between Jera, Eneos, and Kyushu Electric will be 9:5:1, Jera said.
According to Jera, the thermal power station will have three LNG-fueled units with 780 megawatt each.
The joint venture of Tokyo Electric and Chubu Electric plans to launch the first LNG unit in August 2024, while the second and the third unit are expected to start operations in November 2024 and March 2025, respectfully.