Start of FEED for hydrogen production to commence the operation by 2030
Sumitomo Corporation together with ENEOS Corporation and SEDC Energy Sdn Bhd have signed a Joint Development Agreement for the establishment of a clean hydrogen supply chain utilizing renewable energy in Malaysia.
The clean hydrogen supply chain to be jointly developed under the Agreement aiming approximately 90,000 tons per year of clean hydrogen production (Note 1) (including 2,000 tons of hydrogen for local consumption in Sarawak), converting the hydrogen to MCH (Note2), an efficient form of hydrogen transportation, and exporting MCH to Japan. The clean hydrogen will be electrolyzed by renewable energy from hydropower in Sarawak, Malaysia. We will begin the Front End Engineering Design (FEED), aiming to commence the commercial operation by 2030. SC will take lead in evaluating the project feasibility and financing arrangements. ENEOS will take lead in the technical part of MCH production, maritime transportation to Japan. SEDC Energy will be responsible for securing electricity and take lead in the technical part of hydrogen production.
Currently, approximately 3.5GW in total hydropower plants are in operation in Sarawak, enabling to secure renewable-energy electricity. Since the hydropower has little fluctuations in its output, the clean hydrogen can be stably produced. Bintulu, Sarawak where the project site is located has a large petrochemical industrial park, with facilities such as shipping equipment and port facilities that can be utilized for MCH exports. In addition, Sumitomo Corporation Group is engaged in aluminum smelting and manufacturing of manganese alloy in Sarawak state.
The Sumitomo Corporation Group considers hydrogen to be one of the most important future energy sources for decarbonized societies, and it is thus engaged in developing hydrogen-related businesses from various perspectives, such as projects for locally produced and consumed hydrogen that take advantage of the characteristics of locales and of hydrogen itself, large-scale hydrogen value-chain projects that promote the mass production, transportation, storage, and utilization of hydrogen, and investments in new technologies. We are also keen on MCH as an efficient form of hydrogen transportation and believe that by combining it with the abundant hydroelectric resource of Sarawak state, we can produce and transport clean hydrogen at an early stage which could be highly competitive. By promoting this business and other hydrogen related businesses, we shall realize a sustainable energy cycle and consequently contribute to decarbonization and climate change mitigation.
MOU photo session ceremony held at the ASEAN Japan Economic Co-Creation Forum in the presence of Ken Saito, Minister of Economy, Trade and Industry on December 16th.
Photo of Sumitomo, from left side:
Masayuki Hyodo, Representative Director President and Chief Executive Officer
Tomohide Miyata, Representative Director Executive Vice President
Ken Saito, Minister of Economy, Trade and Industry
Sarawak Deputy Minister for Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni
SEDC Energy CEO Robert Hardin
Press release https://is.gd/VB1ZDb
