Japanese trading house Mitsubishi Corp. plans to collaborate with Britain's oil giant Shell PLC in producing green hydrogen via the development of major offshore windfarms in Europe, sources familiar with the matter said Thursday.
The plan is expected to create 400,000 tons of green hydrogen, a type of renewable energy that does not produce carbon dioxide, annually by 2030, accelerating the global trend toward decarbonization.
Hydrogen is used in heaters and as fertilizers, with recent moves to utilize it as fuel.
Mitsubishi, through its subsidiary Eneco Groep N.V., is looking to invest 10 percent in a business firm to be financed by Shell and Norwegian energy company Equinor ASA, among others, the sources said.
The plan will see the creation of offshore wind farms centered in the Netherlands, capable of churning out around 4 million kilowatts of electricity. It will use the generated power to create hydrogen, with the aim of creating 1 million tons annually by 2040, they added.
Mitsubishi is expected to invest a total of 2 trillion yen ($16.2 billion) by fiscal 2030 in decarbonization industries, with approximately half to be spent in renewable energy.
The trading house is also looking to undertake the development of offshore wind farms off the coasts of Akita and Chiba prefectures in northeastern and eastern Japan.