Riyadh, Tokyo Seek to Expand Cooperation in Clean Energy Technology and Green Hydrogen

Construction work at Expo Osaka 2025 exhibition in Japan. Asharq Al-Awsat
Construction work at Expo Osaka 2025 exhibition in Japan. Asharq Al-Awsat
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Riyadh, Tokyo Seek to Expand Cooperation in Clean Energy Technology and Green Hydrogen

Construction work at Expo Osaka 2025 exhibition in Japan. Asharq Al-Awsat
Construction work at Expo Osaka 2025 exhibition in Japan. Asharq Al-Awsat

Tokyo has said it was willing to expand cooperation with Riyadh in areas such as new sensitive technologies, clean energy technology, green hydrogen and ammonia production, while working on a plan to increase trade with the Kingdom and deepen research and scientific cooperation.

Several departments in Japan's Ministry of Economy, Trade, and Industry told Asharq Al-Awsat that Japanese-Saudi dialogue on clean energy is ongoing, lauding the signing of a memorandum of understanding (MoU) in clean energy and clean ammonia in 2022, as well as an MoU on carbon recycling between the two countries.

The ministry told Asharq Al-Awsat that the objective is to achieve zero carbon by 2050 in Japan and by 2060 in Saudi Arabia. It said Saudi Arabia has natural resources in solar and wind energy, along with minerals that enable Japan to provide energy efficiency technology and materials, fostering integration between the two countries in the relevant fields.

It also said that Saudi Arabia is Japan's top destination for crude oil imports, accounting for 40%. The Japanese government will continue to cooperate in the energy sector, the ministry added. Additionally, the government is encouraging the private sector and Japanese companies to invest in the Kingdom, and expects to expand bilateral work in areas such as mining, clean energy, green hydrogen, and ammonia.

Professor Gento Mogi, Deputy Director of the Mohammed bin Salman Center for Future Sciences and Technology for Saudi-Japan Vision 2030 (MbSC2030) at the University of Tokyo, told Asharq Al-Awsat that the cooperation supported by the center goes beyond relying on trade, crude oil purchases, and technology products and cars. It includes training and development for human resources, academics, researchers, and scholarship students, with 16 projects involving 15 university professors.

According to Mogi, the University has dedicated part of its cooperation with institutions, centers, and academic institutes outside the university, and in Saudi Arabia, it is implementing a five-year initiative that will end in June 2025, with hopes of extending it for another five years.

Saudi-Japanese trade

The Japan External Trade Organization (JETRO) expects an increase in bilateral trade, indicating that Japan exported products worth $6.359 billion, including cars, technology, and electronics, while it imported from Saudi Arabia goods worth more than $34 billion, with 98% of that being crude oil.

JETRO revealed to Asharq Al-Awsat its plan to increase infrastructure products and establish smart cities to enhance cooperation between the two countries, saying Saudi Arabia's Vision 2030 has opened broad opportunities for collaboration between the countries.

JETRO also said that it is working to meet a rising Saudi demand for Japanese products, as well as an increasing interest in Saudi products. Joint exhibitions between companies in both countries are working to boost trade and demand for Saudi-Japanese products, it added.

The operations department of the Expo Osaka 2025 exhibition confirmed that Saudi Arabia will have a strong participation in the exhibition.



Gold Retreats as Dollar Firms; Fed Decision Looms

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
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Gold Retreats as Dollar Firms; Fed Decision Looms

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices dipped on Monday, pressured by a firmer US dollar, while investors focused on the Federal Reserve's first meeting of 2025 for more guidance on the interest rate path.

Spot gold dropped 0.7% to $2,751.71 per ounce by 0748 GMT, after trading just below record-high levels on Friday. US gold futures fell 0.8% to $2,756.30.

The dollar gained 0.2%, making gold expensive for other currency holders, Reuters said.

"The US dollar could be the main culprit for gold's weakness... However, the current movement suggests that the downside for the yellow metal is still limited, potentially aided by safe-haven flows," IG market strategist Yeap Jun Rong said.

The US and Colombia pulled back from the brink of a trade war after the White House said the South American nation had agreed to accept military aircraft carrying deported migrants.

Gold is considered a hedge against geopolitical turmoil and inflation. It also tends to thrive in a low interest rate environment as it yields no interest.

Fed policymakers are largely expected to keep rates steady at the end of their Jan. 28-29 meeting, marking the first pause in the rate-cutting cycle that began in September.

"Market focus will likely be on how the Fed reacts to comments from President Trump, who has called for continued interest rate cuts," Reliance Securities' senior analyst Jigar Trivedi said.

Data since the Fed's December meeting has kept intact the core view among Fed officials that inflation will continue to move steadily, if slowly, towards 2%, with a low unemployment rate and continued hiring and economic growth.

COMEX gold speculators raised net long position by 21,864 contracts to 234,358 in the week to Jan. 21, data showed on Friday.

Spot silver dropped 1.3% to $30.20 per ounce, palladium dipped 1.8% to $969.83 and platinum fell 0.9% to $940.40.