Japanese Mitsubishi Corporation will collaborate with Shell Plc. to produce 400,000 tons of green hydrogen annually by 2030, Kyodo News reported Thursday, citing sources familiar with the matter.
Both companies hope to speed the worldwide trend toward decarbonization by producing green hydrogen, a type of renewable energy that does not emit carbon dioxide, through the construction of massive offshore wind farms in Europe.
Mitsubishi, through its subsidiary Eneco Groep N.V., is planning to invest 10% in a commercial venture that will be backed by Shell and Equinor ASA, among others.
Offshore wind farms, with a capacity of roughly 4 million kilowatts, will be built in the Netherlands as part of the proposal. The generated energy will be used to produce hydrogen, with a goal of 1 million tons per year by 2040.
By 2030, Mitsubishi plans to invest a total of 2 trillion yen ($16.2 billion) in decarbonization industries, with renewable energy accounting for almost half of the total.
Mitsubishi is also considering wind projects off the shores of Akita and Chiba prefectures in northeastern and eastern Japan.
In addition to its use in oil refining and the production of fertilizers, hydrogen is also considered a fuel with a significant contribution to clean energy transitions. It offers a green solution for power in the transportation, buildings and electricity generation sectors.
Despite its advantages, the use of clean hydrogen is restricted because of the high costs of hydrogen production from low-carbon energy.
By Sibel Morrow