Japan's links to Newcastle and Hunter are likely to become increasingly lucrative in coming decades as new opportunities for economic and cultural interaction increase, a new report has predicted.
The report, Reimagining the Japan Relationship, highlights opportunities for energy, particularly hydrogen.
"Australia supplies two thirds of Japan's key industrial materials and close to one third of its entire energy needs. The structure of this trade will have to change fundamentally as Australia and Japan decarbonise their economies," the report produced by the Australia-Japan Research Institute and the Australian National University said.
Prime Minister Scott Morrison announced a $3 million feasibility study into the potential of a "green hydrogen hub" at the Port of Newcastle earlier this month.
The potential future hub would complement the The Hunter Hydrogen Network (H2N)project - a large-scale hydrogen production, transportation and export project which seeks to enable the development of the hydrogen economy in the Hunter Valley in partnership with hydrogen users and exporters.
Japanese energy producer Idemitsu, which has prepared a masterplan to transform the Muswellbook Coal site into into an energy training and industry precinct, is a project partner.
"Japan would be the ideal first customer to consume 'green ammonia', due to their forecasted ammonia demands in their 'Japanese Hydrogen Roadmap'," a recent state government-commissioned NSW P2X Industry Pre-Feasibility Study says.
The new report also notes the opportunity to further strengthen the region's cultural and educational links to Japan.
Its first students are due to arrive next year.
The international students will study English and exchange cultural and academic knowledge during their three-month stay.
Newcastle is also home to the largest collection of modern Japanese ceramics in the southern hemisphere.
Hunter Jobs Alliance coordinator Warrick Jordan said the Hunter and Japan each stood to benefit from strengthened ties.
"This report draws attention to accelerating economic shifts across energy, services, and our ageing populations that have serious implications for both Australia and Japan. We should be paying more attention to these changes," he said.
"If we take the opportunities on offer the partnership with Japan can continue to drive jobs and economic activity here as Japan's economy shifts to renewable energy imports and demands new goods and services."
"The strong relationship we have can provide a critical advantage in locking in investment, contracts and partnerships that can give us an edge in the highly competitive race to establish new export sectors like hydrogen. Anything the Hunter can do to encourage cultural, business, and research collaborations with Japan should be an ongoing priority for the region."
