UAE and Japan sign deal to explore opportunities in hydrogen sector

The Ministry of Energy and Infrastructure and the Japanese Ministry of Economy, Trade, and Industry signed a virtual cooperation agreement to explore the opportunities in the field of hydrogen development.

The agreement will expand the joint areas of collaboration and enhance investment in the hydrogen sector, supporting the ambition to accelerate the energy transition towards a low-carbon future.

The agreement, which was signed by Suhail Al Mazrouei, Minister of Energy and Infrastructure, and Ejima Kiyoshi, State Minister of Economy, Trade, and Industry of Japan, in the presence of high-ranking officials from both sides, contributes in strengthening the bilateral relations between the UAE and Japan, as well as emphasizing the Ministry of Energy and Infrastructure’s approach to developing the scope of strategic partnerships between the two friendly countries in terms of their pursuit of global leadership in the field of clean energy, and enhancing the opportunities for growth and development in relying on hydrogen as a clean source of energy.

At the outset of the virtual meeting, Suhail Al Mazrouei welcomed the attendees, emphasising that the agreement reflects the development of relations between the countries of the UAE and Japan and that the agreement is an extension of the historic partnership between UAE and Japan in various fields, which includes the close collaboration in the energy, infrastructure and transport sectors as Japan is considered one of the world leaders in those areas that represent a major supporter of the national economies.

Such partnerships support the direction of the two countries towards achieving the goals of the Paris Climate Agreement, as well as contributing to forming the shift towards clean, renewable energy by relying on hydrogen production. He pointed out that the United Arab Emirates aims to intensify its efforts to enhance investment opportunities in the field of hydrogen and promote work on developing technologies and reducing costs for green and blue hydrogen production.

He added: “The agreement also aims to open broad prospects for growth and development as part of the two countries’ efforts to diversify the energy mix, relying on clean energy, building more partnerships, and strengthening cooperation to take advantage of the opportunities associated with the global leadership of the UAE and Japan in the fields of innovation, technology, and sustainability. This agreement pursues as well the cooperation to exchange information related to hydrogen production, building the supply chain and transport to Japan, and exchanging information to develop regulations and policies”.

Al Mazrouei indicated that UAE seeks to reduce the carbon footprint by implementing the 2050 energy strategy aiming at reducing carbon dioxide in the country by 70%, and raising the individual and institutional consumption efficiency by 40% by the year 2050.

“We also aim to diversify the future energy mix, and raise the contribution of clean energy to the total energy mix produced in the country to 50%,” he said.

It is noteworthy that the Ministry of Energy and Infrastructure recently joined the Abu Dhabi Hydrogen Alliance, which was established by Mubadala Investment Company, Abu Dhabi National Oil Company (ADNOC), and Abu Dhabi Holding Company (ADQ), with the aim of establishing the UAE’s position as a reliable exporter of green hydrogen, which is produced by employing renewable energy technology, and blue hydrogen that is produced through natural gas and carbon capture and storage technology. The United Arab Emirates and Japan recently agreed to cooperate on Fuel Ammonia and Carbon Recycling technologies during the UAE’s virtual business trip to Japan.

The agreement follows the signing of a Memorandum of Cooperation between the Abu Dhabi National Oil Company (ADNOC) and the Ministry of Economy, Trade and Industry of Japan, highlighting the ambition of the UAE and Japan to harness new commercially feasible technologies to reduce carbon emissions.

Ammonia will play an important role in enabling the hydrogen economy in the future and can serve as a hydrogen carrier and zero-emission fuel.

During the trip, Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Group CEO, and Kajiyama Hiroshi, Japan Minister of Economy, Trade and Industry (METI), discussed new opportunities for strategic cooperation between the UAE and Japan.

The discussion focused on industrial cooperation, climate change, Hydrogen and post-Covid economic recovery and took place during the UAE’s virtual business trip to Japan which had in attendance Shehab Ahmed Al Fahim, UAE Ambassador to Japan.

WAM