MANILA, Philippines — Aboitiz Power Corp. is partnering with Japan’s largest power generation company to jointly assess the potential for greener fuels.
AboitizPower, in a stock exchange filing, said it signed a memorandum of understanding (MOU) with JERA Co. Inc. to embark on a joint feasibility study of ammonia co-fired power generation and further development of the ammonia and hydrogen value chains in the Philippines.
“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,” AboitizPower chairman Sabin Aboitiz said.
The partnership is expected to support the decarbonization efforts of AboitizPower, the country’s largest owner and operator of renewable energy based on installed capacity, as well as that of the Philippines.
“Ammonia offers a compelling solution for decarbonizing the power sector, and by looking into it, we are taking a step toward developing the infrastructure needed to support the ammonia and hydrogen value chains,” Aboitiz said.
AboitizPower said there have been increasing developments in the use of large-scale hydrogen production projects for renewable energy and natural gas around the world.
It said that similar to hydrogen, ammonia is an alternative fuel that does not emit any carbon dioxide when it is burned.
If the technology is applied to existing coal-fired power plants, where appropriate, carbon dioxide emissions may be reduced by up to 50 percent, according to the company.
AboitizPower said the introduction of these technologies is expected to bring a significant economic impact on the Philippines through the construction of import terminals, storage facilities, power station retrofits, and the like.
Further, it said the collaboration brings about the potential of developing the Philippines as a hub and leader in the region for greener fuels.
The MOU leverages JERA’s wealth of knowledge and experience to effectively fuel the decarbonization and sustainability efforts of AboitizPower and the Philippines.
JERA operates in more than 10 countries with a total portfolio of 80 gigawatts achieved through its expertise in renewable energy and zero-emission thermal power generation using 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,” JERA president Satoshi Onoda said.
“This MOU allows JERA to leverage its experience and capabilities to support both Aboitiz power and the Philippines to reach their emissions targets,” Onoda said.
JERA has been a strategic partner of AboitizPower since 2021, when the Japanese firm acquired a 27- percent stake in the company.
AboitizPower is looking to spend P190 billion within this decade for an additional 3,700 megawatts (MW) of clean energy capacities.
The company has over 1,000 MW of disclosed and ongoing renewable projects, which include solar, floating solar, hydro and onshore wind.