Japan-based energy company JERA will explore the potential development of green hydrogen and derivatives projects with Saudi Arabia’s Public Investment Fund (PIF).
Having signed a Memorandum of Understanding (MoU), the partners aim to leverage the resources and capabilities of each party in the joint development of projects for green hydrogen derivatives including ammonia, mainly for exports from Saudi Arabia.
JERA’s footprint in the MENA region was firmly established after it set up its JERA Middle East & Africa Management Company in Dubai, UAE, with a view of developing combined cycle power plant, large-scale renewable energy projects and green fuel production projects.
Equipped with a range of gas-fired power and desalination projects in the GCC region, JERA is actively seeking potential partners in the Middle East to expand its development of decarbonisation projects.
The company is looking towards the resource-rich MENA region as a promising production base for green hydrogenand ammonia.
According to the company, to achieve its ‘JERA Zero CO2 Emissions 2050’ objective, JERA will work with leading companies in Japan and overseas to establish and expand supply chains for hydrogen and ammonia.
Playing its part in advancing Saudi Arabia’s 2060 Net Zero target, PIF is continuing to explore investments across sectors including green hydrogen, renewable energy, energy efficiency and waste management.
A number of recently made announcements concerning green hydrogen development in the MENA region are set to advance the idea of a future pattern of energy inderdependence with Europe, according to the Atlantic Council.
If fully implemented, these projects may act as a catalyst for more investments in hydrogen production and infrastructure in the region.
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In addition to a slew of projects worth more than $83bn announced at COP27 by Egypt, Saudi Arabia – which launched its Saudi Green Initiative in 2021 – is planning a major development centrd around NEOM, a new city to be developed in the northwestern corner of the country.
“If fully implemented, the project would set up the world’s largest utility green hydrogen facility,” said Giampaulo Cantini of the Atlantic Council’s Global Energy Centre.
“The Green Initiative also includes thirteen renewable energy projects, with a combined capacity of 11.3GW (gigawatts) that would help reduce some 20m tonnes of carbon emissions per year.”
Equally ambitious projects are being pursued by COP28 host, the UAE. At COP27 it announced a joint initiative dubbed PACE with the US, which aims to ‘catalyse $100bn in financing, investment and other support and to deploy globally 100GW of clean energy by 2035 to advance the energy transition and maximise climate benefits.’
According to Cantini, for the goal for gas-producing countries to push ahead with renewables projects to continue, two trends should be monitored over the coming months and years
This includes the claims by most fossil ful-producing countries in MENA on the need to continue to invest in oil and gas and the continued interconnecting between these countries with European and Asian markets for exporting green renewables.
“The initiatives jointly launched by the EU and Egypt at COP27 hopefully will advance this aim,” added Cantini.
