The Kingdom's Public Investment Fund and the Japanese power generation company JERA Co. Inc. have signed a memorandum of understanding to cooperate develop green hydrogen projects and derivatives with the goal of making Saudi Arabia a regional centre for clean energy. The agreement will make it possible for both parties to start feasibility studies for projects that would serve both home and foreign markets.
The biggest power generation firm in Japan, JERA, operates along the full supply chain, from fuel upstream to power generation. By combining resources and skills to produce green hydrogen derivatives, including ammonia, the agreement is anticipated to further uncover synergies between the two businesses.
The MoU will likewise increase business potential for both parties. As the Kingdom strives to take the lead in addressing climate change, the PIF has been investing in green projects.
Crown Prince Mohammed bin Salman declared in October 2021 that Saudi Arabia would commit more than $180 billion in investments to meet its sustainability goals. JERA already has a presence in the region thanks to the establishment of a Middle East subsidiary in the UAE in October 2021. JERA was formed by the consolidation of the fuel and thermal power departments of the Tokyo Electric Power Co. and the Chubu Electric Power Co.
JERA Middle East and Africa Management Co. Ltd., based in Dubai, was established to create projects for the production of green fuel, large-scale renewable energy projects, and combined cycle power plants. The business claimed it is aggressively seeking new collaborations in the Middle East to boost its development of decarbonization projects, adding that it already has gas-fired power and desalination projects in the Gulf Cooperation Council region.