Japan and Indonesia have agreed to cooperate on decarbonisation technology such as hydrogen, ammonia and carbon capture and storage (CCS), to transition to clean energy, the Japanese industry ministry said.
Japan’s minister Koichi Hagiuda and Indonesian energy minister Arifin Tasrif signed a memorandum of cooperation(MOC) at a bilateral meeting held in Jakarta on Monday.
The MOC is aimed at collaborating in the development and deployment of technologies that contribute to realistic energy transitions such as hydrogen, ammonia as a fuel, CCS and carbon capture utilisation and storage (CCUS).
Hydrogen is mainly used in oil refining and ammonia is used for fertiliser and industrial materials, but both are considered to have the potential to replace higher carbon fuels in future.
Japan has been experimenting with hydrogen to displace natural gas and in replacing some coal with ammonia while the resource-poor country is trying to build global supply chains of potentially carbon-free future fuels.
“Indonesia and Japan can together develop carbon capture utilisation and storage by use available natural resources in Indonesia,” Indonesia’s minister Arifin said in the statement.
Japan sees hydrogen as a major way to decarbonise its economy while sustaining its industrial competitiveness.
Indeed, hydrogen is among the 14 sectors identified under the Green Growth Strategy Through Achieving Carbon Neutrality in 2050 (announced in December 2020) that will be key for Japan’s ability to meet the dual objectives.
Japan is focused on expanding its hydrogen market from two million tons per year today to three million tons per year by 2030 and 20 million tons per year by 2050; through scale, the country seeks to drive down the cost of hydrogen to about one-third of the current level by 2030.