Prime Minister of Japan Fumio Kishida’s recent visit to the Middle East resulted in significant agreements for studies aimed at fostering hydrogen partnerships with key countries in the region.
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During the trip to Saudi Arabia, the United Arab Emirates, and Qatar, the focus shifted from oil and LNG deals to promoting cooperation in green and renewable energy.
The Gulf countries, known for their low solar energy production costs, are seen as ideal candidates to establish a green energy production hub. Notable agreements include the Japan-Saudi Arabia initiative called Lighthouse, targeting clean energy projects like hydrogen, ammonia, and carbon recycling.
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Several memoranda of understanding were signed between Japanese companies and Middle Eastern firms, covering areas like clean hydrogen, ammonia, carbon capture and storage projects, and low-carbon metal production studies.
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While these agreements may not be as binding as supply contracts, theydemonstrate Japan’s long-term interest in importing hydrogen and its derivatives from the Gulf countries.
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Japan is heavily investing in hydrogen and aims to secure a significant supply at home and abroad. With plans to use hydrogen to decarbonize various industries, including auto manufacturing and power plants, Japan is betting big on the fuel’s potential.
To strengthen energy security, Japan needs to fortify its Gulf relationships to compete with China, the world’s leading hydrogen producer and consumer.
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