Overview
JERA Co., Inc. is a major player in the global energy sector, particularly in Japan. Here's a comprehensive overview of the company:
Formation and Ownership
- Established in April 2015 as a 50-50 joint venture between TEPCO Fuel & Power and Chubu Electric Power Company
- Merged the fuel and thermal power departments of the two parent companies
Operations and Capacity
- Japan's largest power generation company
- Produces approximately 30% of Japan's electricity
- Operates and manages thermal power stations previously owned by Tokyo Electric and Chubu Electric
- Total output capacity of around 67 million kW, including capacity under construction
Business Scope
- Involved in the entire energy supply chain:
- LNG upstream projects
- Fuel procurement and transportation
- Power generation
- Wholesales electricity to retail electric utilities like TEPCO Energy Partner and Chubu Electric Power
Historical Context
- Created to separate thermal power generation from the nuclear sector within Tokyo Electric Power Company
- Helped manage legal and fiscal responsibilities associated with the Fukushima Daiichi nuclear disaster
Renewable Energy Initiatives
- Actively investing in renewable energy for decarbonization
- Announced "JERA Zero CO2 Emissions 2050" roadmap in 2020
- Established JERA Nex Limited, a global renewable energy business headquartered in London
- Aims to develop 20GW of renewable capacity by 2035
Global Presence
- Involved in various international projects and partnerships
- Acquired Parkwind, Belgium's largest offshore wind platform, in July 2023
- Centers of excellence in Japan, Taiwan, the US, and Belgium
Sustainability and Future Plans
- Committed to achieving net zero CO2 emissions from domestic and overseas businesses by 2050
- Focusing on sustainable development through clean energy platform
- Exploring partnerships and technologies in solar power, advanced electrolyzer technology, and renewable energy equipment optimization
Leadership Team
JERA Co., Inc. boasts a diverse and experienced leadership team driving its global operations and strategic initiatives:
Global Leadership
- Yukio Kani: Global CEO and Chairman of the Board
- Drives globalization, fosters business partnerships, and creates an open culture
- Expertise in LNG, renewables, and hydrogen/ammonia
- Hisahide Okuda: President, Director, CEO, and COO
- Oversees overall operations and strategy
- Focuses on stable energy procurement, supply, and industry decarbonization
Senior Management
- Kazuo Sakairi: Corporate Vice President, Managing Executive Officer, and CFO
- Tetsuya Watabe: Corporate Vice President, Managing Executive Officer, and Chief O&M·E Officer
- Junya Tawa: Senior Managing Executive Officer and Chief Strategy Officer
- Celso Guiotoko: Senior Managing Executive Officer, CIO, and CISO
- Taisuke Yokota: Senior Managing Executive Officer, CHRO, and Chief Business Support & Solutions Officer
- Ryosuke Tsugaru: Senior Managing Executive Officer and Chief Low Carbon Fuel Officer
- Satoshi Yajima: Senior Managing Executive Officer, Chief Renewable Energy Officer, and Chief Solution Service Officer
- Koichi Morisaki: Senior Managing Executive Officer, Chief Thermal Transition Officer
- Sami Ben Jamaa: Senior Managing Executive Officer and Chief Digital Innovation Officer
- Stephen O'Rourke: Senior Managing Executive Officer and CEO of JERA Americas
- Justin Rowland: Senior Managing Executive Officer and CEO of JERA Global Markets
Regional and Functional Leadership
- Izumi Kai: Managing Executive Officer, CEO of JERA Asia Pte. Ltd., and Head of Platform Business Division
- Jun Minamoto: Managing Executive Officer and CFO of JERA Americas Inc.
- Bruce Otte: Chief Information Officer at JERA Americas
- John O'Brien: Chief Operating Officer at JERA Americas
- Stephen Freeman: Chief Risk Officer at JERA Americas This leadership structure reflects JERA's focus on global expansion, decarbonization, and technological innovation in the energy sector.
History
JERA's history is closely tied to major Japanese electrical power companies, particularly Tokyo Electric Power Company (TEPCO) and Chubu Electric Power. Here's a chronological overview of JERA's formation and development:
Background and Formation
- 2011: Fukushima Daiichi nuclear disaster occurs, prompting discussions about separating thermal power generation from the nuclear sector
- October 7, 2014: TEPCO and Chubu Electric conclude a memorandum of understanding for a comprehensive alliance
- February 9, 2015: Joint-venture agreement signed to form JERA
- April 30, 2015: JERA officially established as a 50-50 joint venture between TEPCO Fuel & Power and Chubu Electric Power
Key Milestones
- October 1, 2015: JERA takes over fuel transportation and fuel trading businesses from parent companies
- July 1, 2016: JERA succeeds to existing fuel and overseas power businesses, including upstream assets and energy infrastructure
- April 1, 2019: Consolidation of all existing thermal power generation enterprises from parent companies, making JERA Japan's largest power generation company
Current Operations and Goals
- Operates 26 thermal power plants in Japan
- Generates approximately 247.3 billion kWh of electricity annually (30% of Japan's total power generation as of March 31, 2022)
- Committed to achieving zero CO₂ emissions by 2050 through:
- Renewable energy
- Zero-emission thermal power generation (ammonia and hydrogen-fueled)
Recent Developments
- Announced plans to restart coal and biomass co-firing at Taketoyo thermal power station
- Plans for coal-only operations during winter and summer starting around January 2025 to ensure stable electric supply JERA's history reflects its evolution from a joint venture to a major player in Japan's energy sector, with a strong focus on sustainable and innovative energy solutions.
Products & Solutions
JERA, Japan's largest power generation company, offers a comprehensive range of products and solutions across the entire energy value chain. Here are the key areas:
- Power Generation and Operation:
- JERA operates a total capacity of approximately 70 GW worldwide, with 59 GW in Japan.
- The company manages 139 units across 26 power plants, providing stable power particularly in Tokyo, Nagoya, and surrounding regions.
- Operation & Maintenance (O&M):
- JERA delivers world-class O&M services, combining expertise with cutting-edge technologies.
- Services include reducing downtime for periodic inspections, ensuring safety, and achieving flexible operation through fuel diversification.
- Digital technologies, big data analytics, and new technologies like batteries are employed to enhance O&M efficiency.
- Decarbonization and Clean Energy:
- JERA is committed to achieving net zero CO2 emissions globally by 2050.
- Key initiatives include fuel conversion to non-fossil alternatives, such as the ammonia conversion project at Hekinan Thermal Power Station.
- In the US, JERA Americas is developing renewable energy facilities and clean ammonia and hydrogen projects.
- Renewable Energy and Green Power:
- JERA invests in green power projects, including offshore wind farms like Ishikari Bay New Port and Formosa 1 and 2.
- The company is also involved in solar power projects, such as the ReNew Power Wind and Solar Power IPP Project.
- Hydrogen and Ammonia Solutions:
- JERA is a joint investor in Hydrogenious LOHC Technologies, focusing on hydrogen storage and transportation.
- The company is developing projects related to the hydrogen/ammonia supply chain, including using up to 40% CO2-free hydrogen mixed with natural gas at the Linden Cogeneration plant.
- Engineering Consultancy Services:
- JERA offers O&M engineering consultancy services globally, particularly in North America, Asia, and the Middle East.
- These services involve collaborating with customers to identify and implement optimal solutions.
- Innovation and Venture Capital:
- Through JERA Ventures, the company invests in startups with cutting-edge technologies and business concepts.
- JERA has partnered with Plug and Play to accelerate innovation in areas like hydrogen/ammonia supply chains, new-generation green power, and green transformation services.
- Asset Management and Optimization:
- JERA manages and optimizes its assets, including natural gas plants and cogeneration facilities.
- The company is an asset manager and part owner of the Linden Cogeneration plant, which uses a mix of hydrogen and natural gas to reduce CO2 emissions. JERA's products and solutions are designed to ensure safe, competitive, and flexible power generation while driving towards a more sustainable and decarbonized energy future.
Core Technology
JERA Co., Inc., Japan's largest power generation company, is investing heavily in core technologies and strategies to achieve its goals of decarbonization, efficiency, and global competitiveness. Key aspects of JERA's core technologies include:
- Digital Transformation and OT/IT Integration:
- JERA leverages Amazon Web Services (AWS) for secure and advanced OT/IT integration.
- The company utilizes AWS IoT Core, AWS Lambda, and Amazon Kinesis for device connectivity, data streaming, and efficient code execution.
- This integration has led to a 20% reduction in unplanned downtime and over 100 million yen in annual fuel cost savings.
- IoT Platform and Predictive Monitoring:
- JERA's AWS-based IoT platform is crucial for predictive monitoring, performance management, and coal-fired boiler operation optimization.
- AI algorithms trained on historical data calculate optimal operation parameters, ensuring consistent performance across all operators.
- The system includes anomaly detection capabilities, significantly reducing unplanned downtime.
- Renewable Energy and JERA Nex:
- JERA Nex, the company's dedicated renewables arm, aims to scale up renewable energy globally.
- The initiative targets 20GW of renewable capacity by 2035, focusing on onshore and offshore wind, solar, and battery storage.
- Innovative technologies include self-propelled floating cranes for offshore wind farm installations and integrated battery storage solutions.
- Hydrogen and Ammonia Technology:
- JERA is collaborating with DENSO to develop high-efficiency hydrogen generation technology using Solid Oxide Electrolysis Cells (SOEC).
- This technology aims to produce green hydrogen and ammonia for low-carbon thermal power generation.
- Demonstration testing is planned at a JERA thermal power station, with goals to scale up to multi-thousand kW levels.
- Optimization and O&M:
- JERA optimizes its global LNG and electricity trading capabilities through JERA Global Markets.
- The company's O&M engineering service, "JERA O&M Way," utilizes digital technology and data analytics for high-quality facility operation.
- Services include remote monitoring and predictive maintenance. These core technologies and strategies are central to JERA's mission of achieving zero CO2 emissions by 2050 and becoming a leading global energy company. By focusing on digital transformation, renewable energy, hydrogen and ammonia technologies, and optimization, JERA is positioning itself at the forefront of the energy industry's transition to a more sustainable future.
Industry Peers
JERA, as a major Japanese energy company, operates in a competitive landscape with several industry peers in the energy and power sectors. Here's an overview of JERA's key industry peers and competitors:
- Domestic Peers in Japan:
- Kansai Electric Power: Specializes in electric power, heat supply, telecommunications, and gas supply services.
- Tokyo Electric Power Company (TEPCO) and Chubu Electric Power Company: Although these are JERA's parent companies, they operate independently in various aspects of the energy sector.
- International Peers:
- bp: While not a direct competitor, bp is a significant partner of JERA, especially in the offshore wind sector through their joint venture, JERA Nex bp.
- Other Energy Companies:
- Nippon Sanso Holdings (Taiyo Nippon Sanso): Provides gas solutions and is another major player in the Japanese energy industry.
- Global Energy Companies:
- Companies like Enel, EDF, and E.ON, while not specifically listed as competitors, are major global players in the energy sector and can be considered peers in the broader context.
- Specific Competitors and Alternatives:
- Japan Material: Though not primarily an energy company, it operates solar power plants and could be considered a peer in the renewable energy segment.
- Waaree Group: An Indian company involved in solar energy and other renewable sectors, which can be seen as a competitor in the global renewable energy market. These companies operate in various segments of the energy industry, including:
- Power generation
- Transmission
- Renewable energy
- LNG and gas supply
- Energy trading
- Infrastructure development While JERA has a strong position in the Japanese market, it faces competition on a global scale, particularly in areas such as renewable energy development, LNG trading, and decarbonization efforts. The company's focus on innovation, digital transformation, and sustainable energy solutions helps maintain its competitive edge in this dynamic industry landscape. As the energy sector continues to evolve with a growing emphasis on clean energy and decarbonization, JERA's relationships with these peers may fluctuate between competition and collaboration, depending on specific projects and strategic objectives.