JGC’s Consortium Awarded a Construction Project for LNG Terminal Facilities in Taiwan

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JGC Holdings Corporation, in a consortium that includes leading Taiwanese construction firm RSEA Engineering Corporation, Taiwan’s Do & Find Engineering Consultants and another company, has been awarded a contract for construction of LNG terminal facilities from state-owned oil and gas company CPC Corporation.

The project calls for engineering, procurement, construction, and commissioning (EPCC) services for Kaohsiung-based CPC Corporation, which will involve construction of eight LNG vaporizers and associated facilities in Taichung. This is a lump-sum contract for approximately 60 billion yen, with the JGC portion being nearly 34 billion yen. Delivery is scheduled for 2024.

Current energy policy in Taiwan seeks to end nuclear power generation and phase out coal-fired power while actively introducing clean energy sources such as liquefied natural gas (LNG) and renewable energy. To this end, the project will expand the existing Taichung LNG receiving terminal and add the new terminal being constructed. Specifically, the consortium has been contracted to build eight vaporizers (with a total capacity of 1,600 tons per hour) and ancillary facilities at the LNG receiving terminal.

Compelling factors that may have led to this order by CPC included technical proposal capabilities meeting client needs, project execution planning that ensures quality, safety, and fast turnaround, and a project execution framework that maximizes each company’s considerable experience.

Taiwan plans to increase power generation fueled by natural gas to 50% of the island’s total power generation by 2025, up from about 30% at present. This commitment is reflected in the active expansion of LNG imports and storage capacity by CPC and Taiwan Power Company (TPC). Construction of several new LNG receiving terminals is also planned. After successful completion of this project, the JGC Group will pursue subsequent projects here.

The JGC Group has positioned LNG receiving terminals in the Asian region as a growth segment and market for EPC business, as outlined in the medium-term business plan (BSP 2025). Building on this project, we will work to secure other new orders, as we contribute to global environmental conservation through expanded use of LNG.

Source: JGC

JGC Holdings Enters EPC Business for Small Modular Reactors (SMRs) Invests in U.S. Company NuScale Power

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JGC Holdings Corporation (JGC) announces its decision to invest in NuScale Power, LLC, a U.S. developer of small modular reactors* (SMRs) with the aim of partnering in the delivery of the engineering, procurement, and construction (EPC) business for these plants. JGC is investing $40 million in NuScale through a special-purpose company established by JGC’s U.S. subsidiary.

“The JGC Group embrace the goal of “Carbon Neutral in 2050″ as committed by Japanese Government last year. Our investment in NuScale technology, with its enhanced safety features, will enable JGC to expand our EPC business and deliver a zero carbon resource to the growing demand of the global energy market, said Tadashi Ishizuka, Representative Director, President and COO of JGC Holdings Corporation.”

As renewable energy becomes a primary energy source with the rapid advancement of decarbonization globally, it remains a challenge to ensure a stable supply of electricity by renewables due to their susceptibility to the natural environment. SMR plants are expected to fulfill a key role as a complement to renewables by providing reliable, dispatchable, zero-emission generation.

SMRs will also serve as an energy source for hydrogen production and seawater desalination. SMR technology provides a much safer design, which is modular in nature and provides flexibility in future expandability and repeatability in project execution.

The SMR market is projected to cover approximately 230 GW of the additional worldwide electricity capacity of the about 4,900 GW needed by 2050, and NuScale SMRs are expected to account for a sizeable portion of the market (market projections based on independent research).

In Japan, the government’s “Green Growth Strategy Through Achieving Carbon Neutrality in 2050” sets out policies for assisting Japanese companies to implement demonstration projects for SMRs overseas. Meanwhile, JGC anticipates that the SMR market will expand in the future, with SMRs facilitating the realization of decarbonized societies alongside hydrogen and renewable energy.

Furthermore, in August 2020, NuScale’s SMR technology became the first to obtain regulatory design approval in the United States, and its advanced SMR technology is ready for commercialization as compared to other U.S. SMR technologies. Accordingly, JGC has made the strategic decision to invest in NuScale and in doing so, enter the EPC business for SMR plants.

With this investment, JGC plans to participate in NuScale’s first SMR plant through JGC Corporation, the group company that handles overseas EPC business. JGC Corporation will collaborate with U.S. EPC giant Fluor Corporation, the majority investor in NuScale, which has a track record of major EPC projects successfully completed in the Energy and Infrastructure markets.

In the medium and long term, JGC Corporation will work with Fluor to secure and execute SMR EPC projects on a global basis, and intends to seek opportunities in integrating SMRs with renewable energy, as well as with hydrogen production and seawater desalination.

For nearly 50 years, the JGC Group has been involved in domestic EPC projects for spent nuclear fuel reprocessing plants, radioactive waste processing and disposal facilities, among others. Outside Japan, the group has assisted customers to bid on a nuclear power plant EPC project in the United Arab Emirates, as well as developed EPC project plans for a nuclear new-build in the UK.

With the ongoing global transition from fossil fuels to hydrogen and renewable energy, the JGC Group is expanding its business in the nuclear-related sector, and continuing proactive efforts to reduce carbon emissions by capitalizing on technologies that contribute to worldwide sustainability.

*Small modular reactors (SMRs):

Small modular reactors, which are defined as advanced reactors that produce electricity of up to 300 MW(e) per module. These reactors have advanced engineered features, are deployable either as a single or multi-module plant, offer the possibility to combine nuclear with alternative energy sources including renewables, and are designed to be built in factories and shipped to utilities for installation as demand arises. (Source: International Atomic Energy Association)

Source: www.jgc.com

Sumitomo Corporation and JGC Holdings Corporation signed a FEED Contract for Hydrogen Production Plant in Australia

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Sumitomo Corporation and JGC Holdings Corporation announced that Sumitomo Corporation and JGC Holdings Corporation, which operates the overseas engineering, procurement, and construction (EPC) business of the JGC Group, have signed a Front End Engineering and Design (FEED) contract for the hydrogen-related project planned by Sumitomo Corporation in Gladstone, Australia.

The Australian Government’s National Hydrogen Strategy, formulated in 2019, sets out a vision of becoming a major global player by 2030, and the Australian Government is presently working to create a national hydrogen industry.
The City of Gladstone, which is located in the State of Queensland, is attracting attention as a suitable location for hydrogen production and consumption. This is due to its existing industrial infrastructure, with government’s initiative on climate change, and having the potential to decarbonise existing sectors such as industry, mobility, ports etc. It also has rich solar radiation with long daylight hours, which leads to the Green Hydrogen production site.

This project is part of a broader program that aims long term to build local hydrogen production and consumption in Gladstone by producing hydrogen from electrolysis of water using electricity from Solar PV as the main power source. The initial hydrogen production plant plans to produce 250-300 tonnes of hydrogen annually, with plans to scale up production.

In addition to producing hydrogen at the initial plant, we are in parallel creating hydrogen demand in this region.

Sumitomo Corporation expects hydrogen to be one of the important energies in the future and promotes hydrogen-related business such as Local Production and Consumption projects and Large Scale Value Chain projects, that utilises the regional requirements of energy and the characteristics of hydrogen.

In order to greatly contribute to the achievement of our long-term goals toward climate change mitigation, “Carbon neutralisation in 2050” and “Realisation of a sustainable energy cycle”, we will accelerate our efforts for the materialisation of a hydrogen society by promoting hydrogen-related businesses.

As one of the key issues (materiality) to be addressed as a corporate group, the JGC Group is making extensive efforts to expand the use of hydrogen energy, which is expected to be an energy source that does not emit CO2 when burned, and ammonia, which is expected to be one of the most promising hydrogen energy carriers* in hydrogen transportation, where there are issues from an economic and safety perspective.

In October 2018, in collaboration with the National Institute of Advanced Industrial Science and Technology (AIST), we became the first in the world to successfully synthesise ammonia from hydrogen produced by electrolysis of water using renewable energy sources and to generate electricity from gas turbines fueled by the synthesised ammonia, and we are currently collaborating with other companies to explore fuel ammonia production projects overseas.

In addition, we are proposing a hydrogen production system that will produce hydrogen from synthetic gas made from waste plastics, in order to continue to contribute to the realisation of a hydrogen society in Japan and abroad.

  • Hydrogen energy carriers

A method of efficiently storing and transporting hydrogen, which is inefficient in its gaseous form for storage and long-distance transport, by converting it into a liquid or hydrogen compound.

Source: www.jgc.com