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Saudi Arabia and Japan to work on producing ammonia

REUTERS/Johanna Geron
Japanese Prime Minister Fumio Kishida will visit Saudi Arabia, UAE and Qatar from July 16 to 18

Saudi Arabia and Japan will establish a public-private framework to jointly producing ammonia.

Tokyo will assist in constructing an ammonia plant planned by Saudi Aramco, with trading houses Mitsubishi Corporation and Mitsui & Co. joining in the venture, The Nikkei, a Tokyo-based financial newspaper, reported.

The agreement will likely be signed when Japanese Prime Minister Fumio Kishida visits Saudi Arabia, the United Arab Emirates and Qatar – the three major energy suppliers to resources-poor Japan – from July 16 to 18.

Ammonia is seen as a prospect for powering next-generation fossil-fuel plants as a zero-carbon fuel.

Saudi Aramco aims to produce as much as 11 million tonnes of ammonia a year by 2030 with the addition of new plants.

The newspaper report said the two countries are expected to agree on joint investment to develop rare earth resources.

Japan will also help speed up the development of resources currently being explored in Saudi Arabia, namely copper, iron and zinc.