The Suez Canal Economic Zone (SCZONE) and the Bureau of Industrial and Labour Affairs of the Tokyo Metropolitan Government have entered into a memorandum of understanding (MoU) to strengthen cooperation in the field of green hydrogen. Signed recently, the agreement underscores a joint commitment to advancing hydrogen development from both environmental and economic perspectives, with an emphasis on building market demand and practical applications.

The partnership aims to facilitate the exchange of expertise, knowledge and information between the two entities. This collaborative framework is expected to enhance policy dialogue, support pilot initiatives, and accelerate the deployment of hydrogen-based technologies. Both parties see green hydrogen as a key element in their respective energy transition pathways, particularly as global economies seek to reduce dependence on fossil fuels and advance towards carbon neutrality.

In addition to strengthening institutional cooperation, the MoU sets the stage for new opportunities in technology and infrastructure development. By combining SCZONE’s strategic role as a hub for logistics and industrial investment with Tokyo’s advanced policy frameworks and industrial base, the collaboration seeks to leverage comparative strengths for mutual benefit. The agreement is also positioned to encourage cross-border investment flows in the hydrogen value chain, covering production, storage and distribution.

The MoU coincides with ongoing industrial activity within the SCZONE. In June 2025, construction began on an integrated industrial complex in Ain Sokhna, valued at $200 million. The project is being developed by Chinese company Sunrev Solar, under the framework of the Tianjin Economic-Technological Development Area (TEDA)–Egypt. It will be implemented in two phases. The first phase, with an investment of $90 million, will focus on establishing two factories for solar cells and modules, each with a capacity of 2 GW. The second phase, worth $110 million, will target the localisation of silicon ingots and wafers, alongside expanding solar cell and module production capabilities.

The Ain Sokhna project is significant not only for its scale but also for its alignment with the region’s broader clean energy ambitions. By expanding solar manufacturing capacity and integrating it with green hydrogen initiatives, SCZONE is positioning itself as a competitive player in renewable energy and low-carbon technologies.

For Tokyo, the agreement reflects its broader strategy to accelerate decarbonisation and secure access to clean energy partnerships abroad. Japan has been a frontrunner in hydrogen policy, and Tokyo’s engagement with international partners is viewed as a way to build resilient supply chains and ensure access to critical resources and technologies.

Source:

https://renewablewatch.in/2025/08/26/sczone-and-tokyo-metropolitan-ink-mou-for-green-hydrogen-cooperation/