JBIC Signs MOU with Ecopetrol S.A. of Republic of Colombia
Supporting Collaboration between Ecopetrol and Japanese Companies in Hydrogen and Ammonia Sectors
- Region: Latin America and the Caribbean
- Energy and Natural Resources
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed today a Memorandum of Understanding (MOU) with Ecopetrol S.A. (Ecopetrol; CEO: Felipe Bayon Pardo) of the Republic of Colombia to strengthen a partnership between the two organizations.
Ecopetrol is Colombia’s state-owned oil company, engaged in the oil and gas value chain business both inside and outside of Colombia. Under its plan to achieve net zero carbon emissions by 2050 published in April 2021, Ecopetrol expressed its ambition to expand green hydrogen projects and renewable energy projects. The purpose of the MOU is to promote Ecopetrol and Japanese companies’ collaborative projects in Colombia by strengthening the cooperation between JBIC and Ecopetrol in a variety of sectors including the supply chain of hydrogen and ammonia, CCS*1
, and renewable energy.
In September 2021, the Government of Colombia published its “Hydrogen Roadmap,” which is a plan for the production, utilization, and exportation of hydrogen until 2050. The country aims to become the world’s and Latin America’s leader in hydrogen production for both green and blue hydrogen, by utilizing its rich water resources and natural gas.
In the Fourth Medium-term Business Plan released in June 2021, JBIC aims to respond to energy transformation toward the realization of a decarbonized society. In addition, in its ESG Policy released in October 2021, in line with the international goals to achieve the objectives of the Paris Agreement, JBIC is committed to pursuing ambitious and accelerated efforts to reduce its operational greenhouse gas emissions to net zero by 2030, and to achieve net zero emissions of its finance portfolio by 2050. The ESG policy adds that through continued engagement with the relevant national governments and authorities, JBIC will contribute to realizing global carbon neutrality by supporting and accelerating the energy transition toward a decarbonized society in emerging and developing countries. The signing of the MOU is in line with the Medium-term Business Plan and ESG Policy of JBIC.
As Japan’s policy-based financial institution, JBIC will continue to provide financial support to create business opportunities and promote business for Japanese companies in a variety of sectors including decarbonization in Colombia by enhancing relations with Colombia and Ecopetrol through multiple means such as signing MOUs.
Carbon dioxide Capture and Storage (CCS) is a technology that separates and captures carbon dioxide that would become a greenhouse gas and stores it in deep waterbeds or geological formations.
Carbon dioxide Capture, Usage and Storage (CCUS) is a technology that separates and captures carbon dioxide that would become a greenhouse gas and utilizes or stores it.