Japan and South Korea are expected to announce next week a plan to build a hydrogen and ammonia supply chain together, which will include investment in production outside these countries, Nikkei reported on Friday.
The leaders of the two countries, Japan's Prime Minister Fumio Kishida and South Korea's President Yoon Suk Yeol are set to announce the Hydrogen Ammonia Global Value Chain during an upcoming visit to Stanford University in the U.S. on November 17.
Japan and South Korea will be cooperating in hydrogen and ammonia supply chains as they look to decarbonize heavy industries such as steelmaking. Through the joint work on a supply chain, the North Asian countries will aim to negotiate favorable prices to ensure stable hydrogen and ammonia supply.
According to Nikkei, state financial institutions, such as the Japan Bank for International Cooperation, will help Japanese and South Korean companies invest in the production of hydrogen and ammonia in the Middle East and the United States. This will give the Asian nations a lower-priced secure supply of hydrogen and ammonia made from natural gas.
Private Japanese and South Korean companies have already signed agreements to join ammonia projects in the U.S. and the United Arab Emirates (UAE).
Earlier this year, Japan's Mitsubishi Corporation, South Korean Lotte Chemical, and Germany's RWE entered into a joint study agreement to develop a clean ammonia project in the Port of Corpus Christi in Texas. The strategic alliance will aim to jointly develop stable and large-scale clean ammonia (green and blue ammonia) supply chains in Asia, Europe, and the U.S, Mitsubishi said.
Back in 2021, Japan's Mitsui & Co. and South Korea's GS Energy Corporation agreed to partner with Abu Dhabi National Oil Company (ADNOC), TA'ZIZ, and Fertiglobe to develop the world-scale low-carbon blue ammonia facility at the TA'ZIZ Industrial Chemicals Zone in Ruwais in the UAE.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More