EU, Japan to form Green Alliance to accelerate energy transition

The EU and Japan are to form a Green Alliance to accelerate decarbonization efforts across the two economies, EU and Japan leaders said in a joint statement following a summit May 27.

The wide-ranging strategic partnership covers a framework on trade, climate change, energy, the environment and sustainable finance.

The alliance would seek to "accelerate the transition of both economies towards becoming climate-neutral, circular and resource-efficient in the coming decades," the EU said.

"Both sides intend to intensify their cooperation on safe and sustainable low-carbon technologies such as renewable energy, in particular offshore wind, energy systems integration, energy markets reform, smart grids, energy storage technologies, batteries, hydrogen with a focus on renewable and low carbon hydrogen," the Green Alliance statement said.

The alliance would also focus on industrial decarbonization, carbon capture, utilization and storage, and nuclear energy.

Further, the two would sign a memorandum of understanding on hydrogen in autumn 2021. They would work on regulatory and business cooperation in hydrogen and other areas such as green finance, including ESG factors and taxonomy for environmentally sustainable activities.

Platts assessed the cost of producing renewable hydrogen via alkaline electrolysis in Europe at Eur4.28/kg ($5.22/kg) May 26 (Netherlands, including capex). PEM electrolysis production was assessed at Eur5.37/kg, while blue hydrogen production by steam methane reforming (including carbon, CCS and capex) was Eur2.23/kg.

Production costs in Japan were $4.32/kg for alkaline electrolysis, with PEM electrolysis at $5.79/kg, and unablated hydrogen production by steam methane reforming at $2.44/kg.