Japanese trading house Mitsubishi Corp. looks to invest over 100 billion yen ($690 million) to build one of the world’s largest “green” hydrogen production plants in the Netherlands.

Green hydrogen is produced by electrolysis of water using electricity derived from renewable energy, meaning carbon dioxide is not emitted during the process. It carries great potential as a next-generation, carbon-free fuel source.

Mitsubishi plans to refine the know-how for commercialization — in areas like production and supply — in Europe, which leads the way in green hydrogen development, and use it to expand globally.

Production will be handled by Eneco Diamond Hydrogen, a joint venture between Mitsubishi and the trading house’s subsidiary Eneco, a major Dutch renewable energy company. Construction of an electrolysis plant will begin in 2026, with plans to start producing hydrogen in 2029.

The plant’s envisioned capacity of 80,000 tonnes annually would be nearly 30 times greater than that of the world’s largest facility now in operation.