Electricity Generating Public Company Limited or EGCO Group has joined forces with JERA Co., Inc. (JERA) to mutually explore development opportunities for the LNG industry supply chain in both domestic and overseas markets.
The cooperation also covers a feasibility study to use hydrogen and ammonia as alternative carbon-free fuels to pave the way toward a low-carbon society and a new era in the energy industry.
Both companies will explore opportunities to develop LNG business, starting from market research, strategy planning, and bid preparation in domestic and overseas markets. Moreover, this MOU’s objective is to use hydrogen and ammonia – which do not emit CO2 during combustion – as next-generation fuel for electricity generation.
The synergy in LNG area will support Thailand’s policy on free-market LNG trade. EGCO Group also obtained LNG Shipper License from the Energy Regulatory Commission under the policy mentioned above. Meanwhile, JERA operates an integrated energy business in Japan with expertise in LNG industry. JERA is also one of the EGCO Group’s shareholders, indirectly owning approximately 12% shareholding through TEPDIA Generating B.V.
Mr. Thepparat Theppitak, EGCO Group’s President, said, “EGCO Group is delighted to join forces with our long-standing partnership JERA to explore new possibilities in the energy industry. The company believes that such collaboration will lead to the development of LNG business throughout the national and international supply chains. This collaboration would allow EGCO Group to use hydrogen and ammonia for electricity generation as well. The move also emphasises EGCO Group’s commitment to strengthen our fuel and infrastructure business and extend our clean energy boundaries with an aim to leap with ongoing energy transition and move toward a low-carbon society.”
In response to the energy transition, Thailand’s National Energy Plan and the low-carbon society trend, EGCO Group established the direction “Cleaner, Smarter and Stronger to Drive Sustainable Growth” to reduce carbon emission intensity by 10% within 2030 and achieve carbon-neutral within 2050.
To pursue such a business direction, the company has been striving to seek investment opportunities in clean energy while stretching its arms into related businesses. To date, the company owns renewable energy capacity as high as 1,364 MW or approximately 23% out of its 5,959 MW total equity contracted capacity.