Japan and South Korea will build a supply chain for hydrogen and ammonia together, the neighbors’ latest move to expand their base of cooperation in economic security, Nikkei has learned. New frameworks will also be established in the fields of quantum technology and semiconductors.

Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk Yeol will announce their program of cooperation next week, when they will be in the U.S. for an Asia-Pacific Economic Cooperation forum summit meeting.

The two countries will work together to enhance their ability to negotiate prices and ensure stable procurement of the two emerging fuels, which do not emit carbon dioxide when burned and are expected to play a role in decarbonizing societies.

Government-affiliated financial institutions will assist Japanese and South Korean companies in raising funds for joint investments in hydrogen and ammonia production projects outside their home countries, such as the Middle East and the U.S.

From Japan, the Japan Bank for International Cooperation will be in charge. The project aims to develop by 2030 a seaborne supply chain that transports the fuels from various parts of the world.

The two leaders will announce the Hydrogen Ammonia Global Value Chain concept when they visit Stanford University in California together on Nov. 17.

The two countries share common challenges such as decarbonizing their large bases of energy-intensive sectors like steel and chemicals and having to depend on imports for fuel.

Hydrogen and ammonia are mostly produced from natural gas. By jointly investing in projects in gas-producing nations, the two countries aim to establish a system for receiving stable supplies at lower prices.

Similar collaborative projects are already underway in the private sector.

Japan’s Mitsubishi Corp. and South Korea’s Lotte Chemical, together with the German energy giant RWE, will annually produce 10 million tons of fuel ammonia in the U.S. and begin procurement in 2029. They will be making “blue” ammonia, which entails capturing and storing the carbon dioxide emitted in the production process.

Separately, Japan’s Mitsui & Co. and South Korea’s GS Energy are taking part in a project in the United Arab Emirates led by the Abu Dhabi National Oil Co. The project is expected to annually produce 1 million tons of ammonia, with procurement starting in 2026.

More concepts exist for new businesses in the Middle East, India and South America. These cases will be targeted under the framework being launched this time.

The countries will also deepen cooperation on quantum technology. Two national research institutes — Japan’s National Institute of Advanced Industrial Science and Technology and the Korea Research Institute of Standards and Science — will announce a memorandum of understanding. Measures to strengthen collaboration among the University of Tokyo, Seoul National University and the University of Chicago will also be announced.

Japan, South Korea and the U.S. will also indicate ways to cooperate on developing semiconductors for improving computer capabilities. Leaders will welcome moves like South Korean chipmakers and Japanese companies jointly developing cutting-edge technologies, plus increased investment in Japan.