Dec. 18, 2023
Sumitomo Corporation

Joint Development Agreement concluded on Clean Hydrogen Supply Chain establishment in Malaysia with ENEOS and SEDC EnergyStart of FEED for hydrogen production to commence the operation by 2030

Sumitomo Corporation (hereinafter “SC”) together with ENEOS Corporation (hereinafter “ENEOS”) and SEDC Energy Sdn Bhd (hereinafter “SEDC Energy”) have signed a Joint Development Agreement (hereinafter “the Agreement”) for the establishment of a clean hydrogen supply chain utilizing renewable energy in Malaysia.

Joint Development Agreement for the establishment of clean hydrogen supply chain

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.

	Power Procurement	Hydrogen Production	MCH Production
SEDC Energy	Lead	Technical Lead
ENEOS		Technical Support	Technical Lead
SC	Support	Project Assessment & Finance Development

	Power Procurement	Hydrogen Production	MCH Production
SEDC Energy	Lead	Technical Lead
ENEOS		Technical Support	Technical Lead
SC	Support	Project Assessment & Finance Development

Sarawak, Malaysia has abundant hydroelectric resources and industrial parks

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.

Sumitomo Corporation Group’s Next-Generation Energy Business

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.

MOU photo session ceremony held at the ASEAN Japan Economic Co-Creation Forum

On December 16th, the Agreement was introduced at the MOU photo session ceremony in the presence of Ken Saito, Minister of Economy, Trade and Industry held at the ASEAN Japan Economic Co-Creation Forum

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

Note 1 Clean Hydrogen：
A standard is set for the amount of CO2 released into the atmosphere when producing 1 kilogram of hydrogen, and hydrogen produced below that standard is defined as clean hydrogen. Standard values are set by each country and region, and in Japan it is being discussed that hydrogen that releases 3.4 kilograms or less of CO2 into the atmosphere when producing 1 kilogram of hydrogen will be treated as clean hydrogen. This project uses electricity derived from hydroelectric power generation, a renewable energy source, to electrolyze water and produce clean hydrogen.

Note 2 MCH (methylcyclohexane)：
MCH is liquid at ambient temperature and pressure, with a volume of 1/500 of hydrogen gas, and is easy to handle for storage and transportation.

Reference information

■SEDC Energy Sdn Bhd

Company Name	SEDC Energy Sdn Bhd
Leadership	・Robert Hardin, CEO ・Haji Abdul Hadi Bin Haji Abdul Kadir, Director
Location	Kuching, Sarawak, Malaysia
Business	SEDC Energy is wholly owned subsidiary of Sarawak Economic Development Corporation, and is responsible to drive Sarawak’s new energy ecosystem