JERA Co., Inc. (“JERA”), through its subsidiary JERA Asia Pte. Ltd. (“JERA Asia”), has today concluded a Memorandum of Understanding (“MOU”) with Summit Power International Limited (“Summit Power”), the largest independent power producer in Bangladesh, to collaborate on the development of a decarbonization roadmap for Summit Power and to explore other decarbonization related opportunities.
The MOU was signed by Toshiro Kudama, JERA Asia CEO, and Ayesha Aziz Khan, Managing Director and CEO of Summit Power, in the presence of Japanese government officials at the Asian Green Growth Partnership Ministerial Meeting 2022 Public-Private Forum.
Summit Power is a power generation company under the umbrella of Bangladesh's leading conglomerate Summit Group, and is the country's largest independent power producer, operating approximately 2.3 GW of power generation capacity (roughly 10% of Bangladesh's power generation capacity). It also operates a floating storage and regasification unit (FSRU) with a daily regasification capacity of 500 million cubic feet located offshore Moheshkhali, Bangladesh. Since agreeing to acquire 22% of Summit Power's outstanding shares in October 2019, JERA has been contributing to the stable supply of electricity in Bangladesh and the enhancement of Summit Power's corporate value through its expertise in the efficient construction and operation of power generation facilities.
In line with its steady economic growth, demand for electricity in Bangladesh is expected to increase and the country is making efforts to diversify its sources of power generation. Additionally, in response to the decline in domestic natural gas production and its government's policy scraping coal-fired power generation development, Bangladesh is accelerating its efforts to expand LNG use and to develop renewable energy in order to achieve both decarbonization and a stable supply of energy to support economic growth.
The MOU indicates that JERA and Summit Power will collaborate in developing a decarbonization roadmap for Summit Power which will also help support Bangladesh’s economic growth ambitions and its Paris Agreement goals. Going forward, the two companies will also explore projects that create opportunities to utilize hydrogen and ammonia in ways that contribute to achieving these targets and that support the introduction of renewable energy such as storage batteries.
Under its “JERA Zero CO2 Emissions 2050” objective, JERA has been working to reduce CO2 emissions from its domestic and overseas businesses to zero by 2050. JERA aims to achieve zero CO2 emissions by engaging with relevant stakeholders to establish roadmaps that show optimal solutions for each country and region.
With a large proportion of Bangladesh’s electricity generated by fossil fuels and a limited number of renewable energy sources available, JERA believes it will be able to fully leverage the experience it has gained in developing a decarbonization roadmap for Japan. Taking the country’s unique circumstances fully into account, JERA will contribute to achieving low-cost and speedy decarbonization for Bangladesh while helping maintain the stable supply of energy.