Posted on 20 Jul 2023
Japan and Saudi Arabia have joined hands for technology and resource development in the decarbonisation areas, Kallanish learns from government press releases.
The leaders of the two nations signed 26 memorandums of cooperation in the energy sector during Japan’s Prime Minister Fumio Kishida’s recent visit to Jeddah.
As part of the bilateral agreement, Japan will provide Saudi Arabia with technologies to expand its solar power generation capabilities, and improve its use of hydrogen and ammonia as clean fuel sources in order to promote the economic diversification of the Middle Eastern nation.
In addition, they also seek joint investments in rare earth and other resources as Japan intends to reduce the reliance on countries like China for key minerals.
As part of the national strategy of decarbonisation and economic diversification, Saudi Arabia is exploring rare earth deposits and other minerals domestically. Japan Organization for Metals and Energy Security (JOGMEC) will offer technical support for the Saudis in conducting preliminary surveys.
Besides, Japan will help accelerate the development of copper, iron and zinc resources already being mined in Saudi Arabia. The partnership will expand into jointly exploring resource development projects elsewhere to secure the critical minerals, also used in electric vehicles.
In return, Saudi Arabia is going to maintain stable support of crude oil for Japan. The Asian nation imports almost all the crude oil it uses, and the crude oil from Saudi Arabia accounts for about one-third of the total import, according to US Energy Information Administration.
The four-day visit started on Sunday. About 40 Japanese companies also joined Japanese delegation.
Source:Kallanish
