Clean Energy for Japan: Nation's Export Bank, Keppel Plan Cooperation on Clean Energy Connecting Digitalization Strategy
Japan’s state-owned export credit bank has signed an agreement with Keppel Infrastructure to support development of a clean energy supply powering data center growth across Asia.
The non-binding memorandum of understanding (MOU) between Keppel and the Japan Bank for International Cooperation (JBIC) will encourage cooperation on renewable energy, electric transmission lines, subsea cables and alternative fuels toward projects around digitalization and data centers throughout Asia. Some projects could include hydrogen and ammonia for decarbonizing data center energy consumption.
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“Our partnership with JBIC marks an important step forward in advancing Asia’s journey towards a low-carbon future anchored on sustainable infrastructure for energy and connectivity,” Chua Yong Hwee, managing director of Energy Nexus for Singapore-based Keppel’s Infrastructure Division, said in a statement. “By combining Keppel’s deep expertise in sustainability and digital infrastructure, with JBIC’s financial strengths and the advanced technology of Japanese enterprises, we are well-positioned to build a robust energy supply chain together, setting new standards for sustainable development in Asia while generating value for our stakeholders.”
Japan is one of the world’s top five economies by gross domestic product but ranks 10th among nations for the most data centers, according to reports. Skyrocketing demand, however, is pushing to accelerate that market growth by more than 41% in the next few years.
The U.S. also is under the pressure of rising demand from hyperscale and artificial intelligence-training growth, but has deep reserves of energy capacity through natural gas, nuclear and renewable energies. Japan has nuclear capacity which was reduced in the wake of the Fukushima disaster, but has little in the way of baseload energy resources domestically such as oil and gas.
Keppel will aid in developing clean energy projects in Asia, including those involving hydrogen and ammonia. The company also is pursuing projects to develop two new subsea cable systems utilizing fiber technology connecting southeast Asia to the rest of the continent.
“The MOU aims to strengthen the partnership between JBIC and Keppel Infra to enhance green transformation (GX) and digital transformation (DX) in sectors such as renewable energy, transmission lines, including inter-regional interconnection, hydrogen and ammonia, data centers, and international telecommunications cables,” reads a statement on the MOU by the JBIC.
Earlier this month, Keppel announced that its Infrastructure Fund had acquired subsea cable specialists Global Marine Group.
Japan Bank for International Cooperation is that nation’s official credit export agency. Although it was a significant global funder of coal projects through 2019, the entity now is seeking net zero emissions goals.
