The agreement will allow the two parties to conduct studies on green hydrogen and its derivatives
Saudi Arabia’s Public Investment Fund (PIF) has signed a Memorandum of Understanding (MoU) with Japan’s largest power generation company, JERA, intending to cooperate closely to explore the potential development of green hydrogen projects and derivatives. Essentially, the agreement will allow the two parties to conduct the fundamental studies and feasibilities that are relevant to the development of green hydrogen and its derivatives, which will support domestic and international markets.
The agreement was signed by Yuichiro Kato, Executive Officer and Head of the LCF Value Chain Division from JERA, and PIF’s Deputy Governor and Head of MENA Investments, Yazeed Alhumied. According to the release, JERA established JERA Middle East & Africa Management Co. Ltd. in Dubai in 2021, with a view of developing combined cycle power plant, large-scale renewable energy projects and green fuel production projects. And while it currently has gas-fired power and desalination projects in the GCC region, it plans to work with potential partners in the Middle East to expand its development of decarbonisation projects.
PIF is playing a critical role in advancing Saudi Arabia’s economic transformation as part of its longer-term diversification strategy, actively developing projects that support the delivery of Saudi Arabia’s net zero target by 2060 through investments across sectors including Green Hydrogen, Renewable Energy, Energy Efficiency, and Waste Management. The MOU will unlock valuable synergies between PIF and JERA by leveraging the resources and capabilities of each party in the joint development of projects for green hydrogen derivatives including ammonia, mainly for exports from Saudi Arabia. Moreover, it will also contribute to the expansion of business opportunities for both entities.
