As ASEAN nations push forward with ambitious energy transition plans, the need for practical, reliable solutions that balance environmental goals with economic realities has never been greater. JERA has emerged as a key partner in this transition, offering a multi-pronged strategy grounded in realism and tailored to the unique needs of each market.

A Three-Pillar Strategy for Transition

“With economic growth in many ASEAN countries exceeding 5% annually, but at different stages of development, JERA’s approach is rooted in supporting ongoing economic growth, while providing solutions that address the region’s energy trilemma: security, affordability, and sustainability,” explains Izumi Kai, CEO of JERA Asia in a recent interview with Enlit Asia 365.

“A pragmatic transition allows each country to chart its own pathway, depending on the characteristics and priorities of each market”, says Kai. The company’s approach is built on three core pillars:

• Natural gas and LNG, to provide round-the-clock, reliable baseload power essential for energy security.
• Renewable energy, led by its subsidiary JERA Nex, focusing on solar, wind, and battery storage.
• Low-carbon fuels and technologies, including hydrogen, ammonia, and carbon capture and storage (CCS), to support long-term decarbonisation goals.

The mix of each of these pillars varies from market to market and this framework allows JERA to adapt its approach to each country’s infrastructure, resources, and pace of development.

LNG: Enabling Growth and Clean Energy Integration

JERA sees LNG as an indispensable bridge fuel in Asia’s evolving power mix. “LNG offers a critical solution both as a cleaner alternative to coal as well as in supporting the build-out of renewable energy,” says Kai. With coal still dominant in several ASEAN markets, LNG not only halves emissions compared to coal when used for power generation, but also provides dispatchable power to complement intermittent renewables.

As one of the world’s largest LNG players with an integrated value chain, JERA is well-positioned to deliver a secure and competitive LNG supply. Its operations span the entire supply chain, from sourcing and shipping to power generation giving it the resilience to better navigate market volatility.

Laying the Groundwork for Next-Generation Fuels

JERA’s existing thermal infrastructure also provides a natural complement for new low-carbon fuels. This synergy allows JERA to leverage its extensive operational experience and capabilities across the entire energy value chain to accelerate progress in these emerging areas.

Kai points to JERA’s real-world progress across the ammonia, hydrogen, and CCS value chains. The company recently made a final investment decision on the Blue Point project in the United States, which will become the world’s largest blue ammonia facility. On the ground, JERA successfully completed the world’s first large-scale ammonia co-firing test at its Hekinan coal-fired power plant in Japan and is now exploring similar initiatives in Southeast Asia.

In the region, JERA has signed MOUs with Aboitiz Power in the Philippines and PTT in Thailand to explore opportunities for low-carbon ammonia and is working with Petronas on a CCS feasibility study linking Japan with Malaysia.

Thailand: A Potential Regional Leader in Low-Carbon Fuels

JERA sees Thailand as a highly promising market for deployment of low-carbon fuel such as hydrogen. “The country’s strategic location, large share of gas-fired generation, and industrial base provide a solid foundation for scaling up these technologies,” suggests Kai.

Further, the previous PDP 2024 (draft) identified hydrogen co-firing as a key driver for the decarbonisation of thermal power, alongside renewables. Such policy support positions Thailand well for future investment.

JERA has a strong presence in Thailand through strategic investments and partnerships. These include an investment in EGCO, and partnerships that have undertaken feasibility studies with BLCP, PTT, and Banpu, as well as a CCS study with EGCO focused on gas-fired generation. Through these collaborations, JERA aims to accelerate the decarbonisation of thermal power and help position Thailand as a regional hub for low-carbon fuels.

However, unlocking the full potential of low-carbon solutions like hydrogen and CCS will still need a broader, coordinated push to scale these efforts effectively across the country.

Tailored, Market-Based Solutions Across ASEAN

As ASEAN navigates the complex realities of decarbonisation, Kai believes the path forward must be rooted in pragmatic collaboration. “Importantly, we do not see hydrogen as a one-size-fits-all solution,” he says. Each country’s development stage, infrastructure readiness, and energy mix require a unique solution.

JERA’s ability to combine LNG, renewables, and low-carbon fuels gives it the flexibility to support a diverse range of transition strategies – whether it’s ammonia co-firing in Thailand, CCS in Malaysia, or hybrid energy solutions in the Philippines.

With its experience, integrated operations, and commitment to market-specific strategies, JERA is not only contributing to national energy goals but helping shape Asia’s low-carbon future.