JERA and PIF unite for development of green H2 projects and derivatives
Japan’s energy major JERA and Saudi Arabia’s Public Investment Fund (PIF) have signed a Memorandum of Understanding (MoU), which is set to drive cooperation between the two parties, to explore opportunities for the development of green hydrogen projects and derivatives.
Specifically, according to JERA, the MoU is paving the way for the two parties to commence the necessary studies and feasibilities for the potential development of green hydrogen and derivatives projects that would be aiming to support domestic and international markets.
The MoU is expected to unlock valuable synergies between PIF and JERA by leveraging 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, and additionally, it will contribute to the expansion of business opportunities for both entities.
To note, in October 2021, JERA established JERA Middle East & Africa Management in Dubai, UAE, with a view of developing combined cycle power plant, large-scale renewable energy projects and green fuel production projects. Furthermore, the company said it already has existing gas-fired power and desalination projects in the GCC region and remains actively prospecting with potential partners in the Middle East to expand its development of decarbonization projects.
On the other side, according to JERA, PIF is playing a role in advancing Saudi Arabia’s economic transformation as part of its longer-term diversification strategy, actively developing projects that support the delivery of Saudi Arabia’s net zero target by 2060 through investments across sectors, including green hydrogen, renewable energy, energy efficiency and waste management.
JERA noted that it considers the Middle East & Africa regions a promising production base for green hydrogen and ammonia, and in order to achieve its JERA Zero CO2 Emissions 2050 objective, it said it will continue to work with leading companies in Japan and overseas to establish and expand supply chains for hydrogen and ammonia, thereby contributing to global decarbonization and energy solutions.
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