Norway-Japan Economic Relations

Norway–Japan: creating value together for a sustainable future

28. 1 2022

With diplomatic ties stretching back more than a century, the relationship between Norway and Japan is diverse and healthy. Continued dialogue between the two nations has led to new opportunities for cooperation and leadership on the world stage through initiatives like the High Level Panel for a Sustainable Ocean Economy.

Trade and investment have been at the centre of the relationship. Leveraging the respective strengths and experiences of each side to ensure maximum value creation and mutual success is at the heart of relationships. In partnership, Norway and Japan are increasingly addressing global issues related to sustainability, reducing carbon emissions and ageing populations.

This report highlights some of the successful examples of economic and research cooperation between the two nations and outlines potential areas for greater collaboration. It focuses on sectors where Norway and Japan have complementary strengths, so it not only covers long-standing business ties in the seafood and maritime sectors, but also includes recent developments in renewable energy and digital technologies.

The broad range of partnerships showcased in this report clearly demonstrates that by working together, Norway and Japan can be leaders in technology and innovation and contribute to a more sustainable future. Furthermore, greater intergovernmental collaboration between Norway and Japan could unlock many more opportunities to the benefit of both nations and contribute towards achieving the sustainable development goals.

Energy

The need to find sustainable energy solutions drives much of the activity in this sector. Japan’s Basic Hydrogen Strategy and Norway’s National Hydrogen Strategy will pave the way for new developments in both countries. Equinor’s deep water experience and offshore wind power credentials are helping the company to pursue potential business with JERA and J-POWER in Japan. Equinor is also working with Idemitsu Kosan in the Norwegian Sea to bring renewables to offshore remote oil and gas operations, making the project as a world first to do this. Norway’s battery supply chain is increasingly attractive to Japanese companies looking to produce greener batteries and gain access to the European market. The tie-up between Sumisho Metalex and FREYR is one example of this growing interest. Future opportunities lie with the development of the hydrogen economy, more offshore wind in Japan and expansion of the battery supply chain in Norway.

Seafood

The seafood industry is of crucial importance to both countries and Japan’s ambitions to become a net exporter of sustainable seafood is a key driver for growing activity in this sector. Norwegian and Japanese efforts in this space are complementary in nature and extend far beyond the well-known growth of salmon consumption. Seafood from Norway is creating jobs in Japan such as the processing of mackerel in rural Japan. Mitsubishi Corporation’s acquisition of Norwegian company Cermaq has enabled the trading house to become a global force in seafood. Additionally, Proximar Seafood’s land-based aquaculture management experience matched with Japan’s manufacturing prowess will help to shorten the supply chain and reduce the carbon footprint in salmon farming. Looking ahead more opportunities lie with the expansion of aquaculture, further development of the supply chain and a continued leadership in the sector to bring positive change.

Maritime

Norway’s world-leading strengths in the maritime sector coupled with Japan’s global shipping business are generating new solutions that make operations greener and more competitive. Norwegian innovation in electrification, the hydrogen economy, and autonomous systems is helping shipping meet reduced emission targets. The increasing use of maritime-dedicated communications that provide more data in real-time improves efficiency and further reduces emissions. The great potential for maritime collaboration is exemplified by Mitsui’s acquisition of Akastor to optimise operations for deep ocean resource exploration, the partnership between Toyota and Corvus Energy to develop maritime hydrogen fuel cell systems, and Dualog’s role in driving technological innovation for the Internet of Things and Big Data with Nippon Yusen Kaisha in Japan. Further opportunities lie in areas such as growing digitalisation in the maritime industry, more cooperation with Norwegian cluster programmes, greater electrification, and the development of autonomous for shipping.

Digital Technologies and Innovation

Digital technologies and innovative start-ups are increasingly becoming critical to the advancement of society. This is an area where Norway’s reputable track-record as a leader in digitalisation perfectly complements Japan’s renewed commitment towards a digital society. The technologies and solutions of Norwegian start-ups, which are forging the way for positive change, are helping Japan to achieve Society 5.0 while also tackling global issues related to sustainability and healthcare. Examples include TOMRA using sensor technologies to boost recycling efforts, Cognite optimising industrial operations using Big Data and artificial intelligence, and Norwegian EdTech companies opening up new and engaging ways to learn. SoftBank’s recent investment in three promising Norwegian start-ups is a clear indication of the strength and relevance of the Norwegian innovation ecosystem. Further opportunities lie with EdTech, realising Society 5.0 and the digitalisation of public services.

Research

Government support and initiatives that strengthen the ties between Norway and Japan are helping foster cluster development and closer cooperation between research institutions and industry. This is ensuring the development and commercialisation of new technologies and generating ideas that have the potential to shape the future of both countries.

Additionally, these programmes are contributing to the growth and empowerment of engineers and entrepreneurs that are pioneering world-class solutions. Initiatives, including the research cooperation platform Kyoto International Forum for Environment and Energy (KIFEE) and Norwegian government research programmes such as INTPART (International Partnerships for Excellent Education and Research), promote robust academic exchanges, stimulate discussion on common issues and create new research partnerships. As both countries step up efforts in sustainability and digitalisation, there is room for even greater collaboration to foster progress and disruptive innovations. Further opportunities lie with greater participation in EU and Norway-funded clusters, industry-focused research initiatives in marine and material science, renewable and clean energy, and maritime engineering and continued commitment to the 2003 Agreement between the Government of Norway and the Government of Japan on Cooperation in Science and Technology to further develop innovation.