"South Korea-Japan Economic Cooperation on Securing Hydrogen and Ammonia Supply Chains"

Yoon and Kishida to Visit Stanford University in the US Together Next Week

The Nihon Keizai Shimbun (Nikkei) reported on the 10th that South Korea and Japan plan to expand economic security cooperation, including collaboration to secure hydrogen and ammonia supply sources and advance related technologies.

According to the report, President Yoon Suk-yeol of South Korea and Prime Minister Fumio Kishida of Japan, who will visit the United States next week to attend the Asia-Pacific Economic Cooperation (APEC) summit, plan to visit Stanford University on the 17th to unveil their vision for a "Hydrogen and Ammonia Global Value Chain."

Both countries intend to support government and public financial institution funding for companies jointly investing in hydrogen and ammonia projects conducted in third countries such as the Middle East or the United States. They also plan to establish maritime transportation supply chains to import hydrogen and ammonia from around the world by 2030.

Nikkei noted, "South Korea and Japan share commonalities in having industries with high energy consumption such as steel and chemicals, and heavily relying on imported fuels," adding, "If the two countries cooperate, they can increase their bargaining power on prices and secure stable fuel procurement." It further stated, "Using hydrogen and ammonia, which emit no carbon dioxide during combustion, can reduce national and corporate carbon dioxide emissions, but securing supply sources remains a challenge."

Already, companies from both countries are joining forces to produce hydrogen and ammonia. Lotte Chemical and Japan's Mitsubishi Corporation, together with German energy company RWE, have agreed to produce 10 million tons annually of 'blue ammonia' in the United States and begin procurement as early as 2029. Blue ammonia refers to ammonia produced from blue hydrogen, which is hydrogen with carbon dioxide removed through carbon capture and storage (CCS) technology.

Additionally, GS Energy and Japan's Mitsui & Co. have agreed to participate in a plan by the Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates (UAE). In this project, which will produce 1 million tons of blue ammonia annually starting in 2026, ADNOC holds an 80% stake, while GS Energy and Mitsui & Co. each hold 10%, as agreed.

Prime Minister Kishida is expected to appeal to students at Stanford University alongside President Yoon, emphasizing that "South Korea and Japan have strong steel and chemical industries and are promoting the use of hydrogen and ammonia," according to Nikkei.

Nikkei also anticipates that Prime Minister Kishida will mention bilateral technological cooperation with South Korea. The report forecasts that "the Korea Research Institute of Standards and Science (KRISS) and Japan's National Institute of Advanced Industrial Science and Technology (AIST) will announce the signing of a memorandum of understanding," and that plans to strengthen cooperation with Seoul National University, the University of Tokyo, and the University of Chicago will be announced. It is also expected that trilateral cooperation among South Korea, the United States, and Japan in semiconductor technology development will be revealed to enhance computing capabilities. Nikkei analyzed that "the background to South Korea and Japan's efforts to expand cooperation in supply chains and science and technology fields is the intention to create a future-oriented relationship that does not regress even if administrations change."

[Image source=Yonhap News]

This content was produced with the assistance of AI translation services.