Japan joins forces with Saudi Arabia to advance in the hydrogen, ammonia and carbon recycling markets.
A partnership for clean fuels
Japan has been cooperating withSaudi Arabia for several years on crude oil supplies. The country is the leading supplier with almost 40% of its imports coming from the world’s second largest oil producer. Japan’s Minister of Economy, Trade and Industry, Yasutoshi Nishimura, intends to develop the partnership to strengthen his country’s energy security.
For example, he visited Saudi Arabia, Oman and Malaysia in December to conclude a series of agreements. Among them are the memoranda of cooperation signed as a follow-up to the first round of the Japan-Saudi Energy Dialogue in Riyadh. The objectives concern the current relationships based on oil and LNG but also new promising areas such as ammonia and hydrogen.
Along with North America and Oceania, Saudi Arabia was identified as a long-term supplier of ammonia by a Japanese expert committee. Japan will import ammonia at a competitive price to produce 3 million tons of electricity each year, co-fired with coal. Both countries could therefore accelerate the energy transition by using hydrogen and ammonia as fuels.
The development of hydrogen
In addition, they will work to advance research in hydrogen technology. Finally, they could conduct a joint study to accelerate technologies such as direct air capture, carbon use and storage, or carbon recycling.
Saudi Aramco, in 2020, was transporting the first shipment of blue ammonia to Japan for a demonstration project. SABIC’s Ibn-Sina plant and the Uthmaniyah field will reuse this technology for methanol production and tertiary oil recovery. So, in October, Japan decided to repeat the experience and signed a cooperation protocol with Saudi Aramco.
The aim is to develop hydrogen and ammonia fuel. The same is true for Japan’s largest refiner ENEOS, which intends to expand its production activities. In addition, the company hopes to expand its hydrogen transportation and sales capabilities.
