Japan Oil, Gas and Metals National Corporation (JOGMEC) has agreed with Saudi Arabian Oil Company (Saudi Aramco) to collaborate on project support, technology development and human resource development related to the production and/or storage of hydrogen and fuel ammonia, which are expected to be low carbon energy sources for the future toward carbon neutrality. With this agreement, Mr. HOSONO Tetsuhiro, Chairman & CEO, JOGMEC, and Mr. Mohammed Y. Al Qahtani, Senior Vice President, Downstream, Saudi Aramco signed a Memorandum of Cooperation on October 8, 2022.
With this MOC, JOGMEC intends to proactively support the implementation and/or provision of risk money (equity capital and liability guarantees) for a specific project in the Kingdom of Saudi Arabia related to the production and/or storage of hydrogen and ammonia, which are our new support areas under the revised JOGMEC law promulgated on May 20, 2022. In addition, we will hold workshops to find solutions to various issues to be addressed to realize the individual project, while taking into account the guidelines published by JOGMEC for CCS (Carbon dioxide Capture and Storage and greenhouse gas emissions calculations. Furthermore, we will promote comprehensive cooperation with Saudi Aramco, including technological development to reduce environmental impact and human resource development to achieve carbon neutrality.
The conclusion of the MOC in the field of energy development between JOGMEC (including our preceding body Japan National Oil Corporation: JNOC) and Saudi Aramco, marks the first time in history. This MOC is intended to tackle the common challenges of low carbon and decarbonization toward carbon neutrality by 2050.
The strengthening of cooperation between the Kingdom of Saudi Arabia, which is expected to become a major producer of hydrogen and fuel ammonia as is the case with crude oil and natural gas, and Japan, which is expected to become a major consumer, through the conclusion of this MOC is expected to be a strong driving force in establishing the emerging market of hydrogen and fuel ammonia.
JOGMEC will keep an eye on developing the relationships that we have established with oil and gas producing countries, and will actively support projects in which Japanese companies participate, such as those related to the production and/or storage of hydrogen and fuel ammonia, and to the CCS, which is essential for low-carbonization and decarbonization.
