Renewable Energy MOU Signed

Five leading Japanese energy companies have signed memoranda of understanding with Saudi counterparts for a series of green hydrogen and solar energy projects valued at approximately $2 billion. The signing ceremony, held at the Ministry of Energy headquarters in Riyadh, was attended by senior officials from both governments and represents a significant step forward in the Saudi-Japan clean energy partnership. The agreements cover four major project areas: Green Hydrogen Production: Two Japanese-Saudi consortia will develop green hydrogen production facilities in NEOM and Yanbu, with a combined annual capacity of 600,000 tons. These facilities will use solar-powered electrolysis to produce hydrogen for export to Japan and for domestic industrial use. Japan, which has positioned hydrogen as a cornerstone of its 2050 carbon neutrality strategy, sees Saudi Arabia as a key supplier due to its abundant solar resources and strategic geographic location. Solar Manufacturing: A joint venture between Japanese solar technology firms and Saudi industrial partners will establish a 2-gigawatt solar panel manufacturing facility in King Abdullah Economic City. The facility will use cutting-edge heterojunction technology developed in Japan and will create approximately 1,500 direct jobs. Production is expected to begin in 2027 and will serve both the Saudi domestic market and export markets across the Middle East and Africa. Energy Storage Systems: Japanese battery technology companies will collaborate with Saudi research institutions to develop next-generation energy storage solutions optimized for the Kingdom's extreme climate conditions. This includes solid-state battery technology and large-scale grid storage systems that can withstand temperatures exceeding 50°C. Smart Grid Technology: Japanese smart grid solutions will be deployed across several Saudi cities as part of the Kingdom's National Renewable Energy Program. These systems will optimize the integration of renewable energy sources into the national grid and improve overall energy efficiency. MOSOOK coordinated the initial introductions between the companies involved and provided ongoing support during the 18-month negotiation process. The center's energy sector team facilitated technical assessments, regulatory navigation, and financial structuring discussions that were crucial to reaching these agreements.