JERA, Samsung C&T Join Forces to Secure Hydrogen-Ammonia Supply

JERA Co., Inc., Japan's largest power generation company, has signed a Memorandum of Understanding (MoU) with Samsung C&T Corporation, a leading South Korean trading and investment company, to strengthen the resilience of hydrogen and ammonia value chains while enhancing long-term supply security across Northeast Asia. The collaboration reflects the growing commitment of both companies to support the region's transition toward low-carbon energy and develop reliable supply networks for clean fuels.

Under the MoU, JERA and Samsung C&T will jointly explore opportunities to improve operational flexibility across hydrogen and ammonia value chains. The partnership will examine measures to optimize the handling, storage, and transportation of these fuels, including approaches for managing and segregating carbon-intensity attributes within storage infrastructure such as tanks. These efforts are expected to support transparent and efficient supply chains as demand for certified low-carbon hydrogen and ammonia continues to increase.

Japan and South Korea remain heavily dependent on imported energy due to limited domestic natural resources, making energy security a strategic priority for both nations. As governments accelerate decarbonization initiatives, hydrogen and ammonia are emerging as key fuels for reducing carbon emissions in power generation and industrial sectors. Developing commercially viable and resilient value chains will be essential to ensuring the large-scale deployment of these low-carbon energy carriers.

JERA is currently advancing Japan's first integrated low-carbon ammonia value chain, covering production, transportation, and utilization, with commercial operations targeted to begin around fiscal year 2029. Samsung C&T is simultaneously expanding its low-carbon ammonia infrastructure and supply chain capabilities in South Korea to support the country's growing clean energy ambitions and rising demand for sustainable fuels.

Both companies have also received support under their respective national programs promoting low-carbon ammonia development. JERA was selected as a supplier of low-carbon hydrogen and its derivatives under Japan's Ministry of Economy, Trade and Industry (METI) price-gap support scheme announced in December 2025. Samsung C&T continues to broaden its hydrogen business portfolio while establishing a stable supply chain for clean ammonia in response to increasing global demand.

Commenting on the partnership, Irtiza Sayyed, Senior Managing Executive Officer of JERA and CEO of JERA Global Energy Solutions, stated that resilient and commercially viable hydrogen and ammonia value chains require close collaboration between industry leaders across international markets. He noted that Japan and South Korea face similar challenges as energy-importing nations and that the partnership aims to accelerate the development of robust low-carbon hydrogen and ammonia markets throughout the region.

The agreement also supports JERA's Zero CO2 Emissions 2050 initiative, under which the company is working to achieve net-zero carbon emissions across its domestic and international operations. Through strategic partnerships such as this, JERA intends to expand low-carbon hydrogen and ammonia value chains and contribute to addressing global energy transition challenges while strengthening regional energy security.

Impact on Product and Chemical Commodity Prices

The JERA–Samsung C&T partnership is expected to accelerate the commercialization of low-carbon hydrogen and ammonia by strengthening supply chains, storage infrastructure, and logistics across Northeast Asia. Improved supply security and carbon-intensity management will support wider adoption in power generation, industrial applications, and marine fuels while encouraging investments in clean energy infrastructure. From a pricing perspective, the agreement is unlikely to affect ammonia prices immediately, as they remain driven by natural gas costs and fertilizer demand. However, ChemAnalyst expects the collaboration to strengthen long-term demand for low-carbon ammonia, providing moderate bullish support to ammonia prices as regional hydrogen and clean fuel markets expand.