[Japan] Japan and UAE sign agreement to cooperate on hydrogen technology and supply chain

On April 8, 2021, Japan’s Ministry of Economy, Trade and Industry (METI) signed a memorandum of cooperation (MOC) with the UAE’s Ministry of Energy & Infrastructure to work together on hydrogen production technology and to develop an international hydrogen supply chain.[1] [2] The UAE is an oil-producing country, but the country has abundant solar radiation and focuses on renewable energy such as solar power generation, so it has high production potential for "green hydrogen." Japan has signed the MOC with the UAE as the first step to strengthen its relationship with hydrogen resource countries. The hydrogen will most likely be produced from fossil fuels, but the emissions will be captured and used in industry. The countries will also work to boost hydrogen demand in the UAE. Currently, Japan’s hydrogen demand is 2 million tonnes per year. As a part of its green growth strategy to reach net-zero carbon emissions by 2050, Japan set a goal in December 2020 to boost demand to 3 million tonnes of hydrogen per year by 2030 and 20 million tonnes of hydrogen per year by 2050. Japan’s green growth strategy also includes plans for ammonia; in January 2021, Japan struck a deal with the UAE’s state-owned Abu Dhabi National Oil Co. (ADNOC) to cooperate on fuel ammonia production.

[1] https://www.reuters.com/article/us-japan-hydrogen-emirates/japan-uae-to-collaborate-on-hydrogen-technology-supply-chain-idUSKBN2BV1CJ

[2] https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/040821-japan-signs-first-hydrogen-cooperation-deal-with-uae-to-consider-supply-chain