Japan's Strategic Overseas Resource Investment Expansion with Mitsubishi: A Shift towards Green Fuels
Key Ideas
- Japan's JOGMEC partners with Mitsubishi to invest in Infinium, a U.S. energy company developing e-fuel technology based on liquid gasification, producing green fuels like hydrogen combined with carbon dioxide.
- Japan is strategically expanding its overseas resource investments, focusing on future energy sources like hydrogen, ammonia, and rare minerals, aiming to secure stable resource supplies through public-private partnerships.
- Contrasting Japan's proactive resource development approach, Korea faces challenges in overseas resource investments after restructuring its resource development agencies, emphasizing financial stability over resource exploration.
- Experts highlight the importance of international cooperation in resource development to ensure stable resource supply chains amid global tensions over resource weaponization strategies.
Japan's Petroleum Natural Gas and Metal Mineral Resources Organization (JOGMEC) has teamed up with Mitsubishi to invest in Infinium, an American energy company specializing in e-fuel technology. Infinium's innovative process synthesizes hydrogen with carbon dioxide to produce green fuels such as gasoline, diesel, and aircraft oil. This collaboration signifies Japan's strategic move towards sustainable energy solutions.
Japan, acknowledging its resource-poor status akin to Korea, is actively expanding its overseas resource investments, focusing on future energy sources like hydrogen and ammonia, along with rare minerals such as rare earths and lithium. In contrast, Korea's resource development rate lags significantly behind Japan's, as the Korean government has shifted its focus towards financial stability within public enterprises rather than aggressive resource exploration.
JOGMEC, established in 2004, plays a pivotal role in Japan's overseas resource development efforts, providing substantial investments, financial support, and technological expertise. Leading Japanese corporations like Mitsui C&T and Itochu Corporation are also joining forces with JOGMEC to secure overseas resources through joint ventures.
While Japan's collaborative initiatives flourish, Korea's overseas resource investments face challenges following the integration of the Korea Mining Authority and the Korea Resources Corporation. Experts emphasize the importance of international partnerships in navigating the complexities of the global resource landscape and ensuring stable resource supply chains amidst rising tensions over resource weaponization strategies between nations like the United States and China.
Topics
Projects
Technology
Investment
Global Cooperation
Energy Industry
Resource Development
Public Institutions
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