JERA to invest $32 billion in LNG, renewables, hydrogen and ammonia by 2035

Japanese energy company JERA has unveiled a new growth strategy that integrates three key business pillars – LNG, renewables, and hydrogen & ammonia – along with an investment of 1-2 trillion yen (around $6-$12.9 billion) for each business pillar, and organizational edge, marking a realistic pathway towards 2035, and ultimately its 2050 zero-emission goals.

Illustration; Source: JERA

JERA claims that the new strategy ensures agility and efficiency further solidifying the company’s leadership in solving energy trilemma, achieving energy sustainability, affordability, and stability all at once.

The emphasized three pillars – LNG, renewables, and hydrogen & ammonia – are expected to bring complementary synergies for driving steady and reliable progress toward decarbonization as they can be tailored to deliver optimal solutions that align with each customer, region or country’s unique geographic and economic characteristics, JERA explained.

The company has set the following goals corresponding to the three business pillars by fiscal year 2035: 

  • LNG: JERA targets more than 35 million tons of transaction volume as one of the world’s largest LNG integrated value chain players.
  • Renewables: JERA aims at 20 GW (gigawatts) of capacity becoming one of the industry’s leading renewables players. 
  • Hydrogen & Ammonia: JERA targets approximately 7 million tons of handling volume and aims to pioneer the global hydrogen & ammonia value chain.

In addition, the company announced its financial strategy and key financial targets, aiming to reach a consolidated net profit of 350 billion yen (around $2 billion) and an EBITDA of 700 billion yen (around $4.5 billion).

JERA plans a total cash flow investment of 5 trillion yen (around $32 billion) which will split into 1-2 trillion yen ($6-$12.9 billion) for each business pillar of LNG, renewables, and hydrogen & ammonia, with a built-in flexibility to make allocation changes between the three business areas if deemed suitable in case of external changes.

Yukio Kani, Global CEO and Chair, said: “At JERA, we are not just adapting to the evolving global energy landscape; we are actively setting the pace. With our new growth strategy, we are positioning ourselves at the forefront of the energy transition. Our vision will be made possible through strategic collaborations with our global partners. Built on mutual goals and a culture of diversity and openness, we and our partners will join forces to embark on a journey to transform the energy sector.”

Hisahide Okuda, President, Director, CEO, and COO, added: ”With strong emphasis on capital market valuation comparing with global peers, JERA has set a clear financial targets for profitability, capital efficiency and financial reliability to be achieved by 2035. JERA will actively allocate total capital investment of 5 trillion yen with flexibly adjusting investment balance over three business areas in response to market trends, technological innovations and global policy shifts.”

JERA is also progressing toward creating zero emissions in thermal power generation and has set targets to reduce CO2 emissions intensity by 20% as of 2030, and total CO2 emissions by 60% as of FY2035 before achieving zero CO2 emissions from its domestic and overseas operations as of 2050.

To achieve these targets, JERA intends to phase out inefficient coal-fired thermal power by FY2030 and also convert 100% of the other coal-fired power generation to ammonia by 2040’s, eliminating coal completely.