Listed firm Aboitiz Power Corporation has signed a memorandum of understanding (MOU) with its Japanese firm-partner JERA Co. Inc. to jointly explore ammonia co-firing on the former’s coal plants, and assess the potential of hydrogen fuel applications in the country.

The Aboitiz Power-JERA deal was one of the agreements sealed during the state visit of President Ferdinand Marcos Jr. to Japan this week.

The proposed ammonia co-firing to reduce carbon emissions from coal plants has already been started by other power generators in the Philippine, hence, the Aboitiz group will be following the pathway already being trailblazed by other industry players.

Aboitiz Power explained that under the MOU, the parties “commit to collaborative efforts in assessing the feasibility of ammonia co-fired power generation and further development of the ammonia and hydrogen value chains in the Philippines.”

It noted that such initiatives “will support the decarbonization efforts of Aboitiz Power and the Philippines, with long-lasting effects that will benefit the entire world.”

The Filipino firm claimed that “if the technology is applied to existing coal-fired power plants, where appropriate, carbon dioxide emissions may be reduced by up to 50 percent.”

Aboitiz Power Chairman Sabin Aboitiz asserted that “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.”

He expounded “ammonia offers a compelling solution for decarbonizing the power sector, and by looking into it, we are taking a step towards developing the infrastructure needed to support the ammonia and hydrogen value chains.”

Back in 2021, Aboitiz unveiled its massive investment plan for up to 3,700MW of renewable energy (RE) installations – but its development ramp up remains fledgling compared to the more aggressive investors in the green energy space.

For JERA, which is a joint venture between TEPCO Fuel & Power (a subsidiary of Tokyo Electric Power Company) and Chubu Electric, it is known as a big-ticket player in the global gas industry – and that is an investment sphere wherein hydrogen could have its ideal technology coupling – because many gas plants in the world are now aspiring to eventually shift to hydrogen fuel so they can further concretize their decarbonization goals or net zero targets.

As highlighted by JERA President Satoshi Onoda, their company “is focused on providing cutting-edge solutions to the world’s energy issues and strengthening the value chains for greener fuels such as ammonia and hydrogen.”

He emphasized that via the collaboration “we will support Aboitiz Power’s decarbonization efforts while also considering additional opportunities for advancing technology development in the Philippines.”

Onoda added “this MOU allows JERA to leverage its experience and capabilities to support both Aboitiz Power and the Philippines to reach their emissions targets.”