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Japan and South Korea will be jointly building a supply chain for hydrogen and ammonia along with agreements to establish new frameworks in the fields of Quantum technology and semiconductors. The countries have made their new move towards augmenting their base of cooperation in economic security.
Japanese Prime Minister Fumio Kishida and South Korean President Yoon Sook-yeol will be announcing their cooperation in the U.S. when visiting for the Asia-Pacific Economic Cooperation (APEC) forum summit meeting.
Japan and South Korea, both heavily reliant on energy imports, have joined forces to enhance their collective bargaining power in negotiating prices and volumes for crucial fuels. Hydrogen and ammonia, primarily derived from natural gas, serve as environmentally friendly fuels, emitting no carbon dioxide when burned, aligning with global efforts toward decarbonization.
To support collaborative investments in hydrogen and ammonia production projects outside traditional sources like the Middle East and the United States, state-backed financial institutions will assist companies from both countries in raising funds. The ambitious seaborne supply chain project for fuel transportation is set to be developed by 2030.
Additionally, the two countries are poised to strengthen collaboration in the field of quantum technology. A memorandum of understanding is set to be announced between two prominent national research institutes, namely Japan’s National Institute of Advanced Industrial Science and Technology and the Korea Research Institute of Standards and Science. Furthermore, initiatives to enhance cooperation among esteemed academic institutions, including the University of Tokyo, Seoul National University, and the University of Chicago, will also be unveiled, as reported by Nikkei Asia.
The collaborative projects in hydrogen, ammonia, quantum technology, and semiconductors are a huge opportunity for the nations to attract international collaborations and export deals, subsequently lowering prices domestically thereby reducing production costs significantly over domestically manufactured products. The nations can make new collaborations with nations to attract investments in technological sectors and employment in the countries.