PARIS, France - Marubeni Corp has agreed to study clean hydrogen production in Saudi Arabia together with the kingdom's sovereign wealth fund, the Japanese trading house said on Thursday, as Riyadh is exploring cleaner energy to cut its reliance on oil.
Saudi Arabia, a leading oil-producing nation and a key player in the Organization of the Petroleum Exporting Countries, is looking to add other types of energy sources, including cleaner fuel and renewable, to diversify its economy.
Marubeni and the Saudi sovereign Public Investment Fund (PIF), central to the kingdom's goal to cut reliance on oil, agreed to conduct a feasibility study for producing clean hydrogen for both domestic and international markets, the Japanese firm said.
PIF, which manages more than $600 billion in assets, plans to invest more than $10 billion in eligible green projects by 2026, including in renewable energy, clean transport and sustainable water management, it said last year.
Saudi Arabia, which plans to reach net zero emission by 2060, also by developing carbon capture and storage hubs, may bring the target forward if the technology allows.