Sumitomo Corporation to Participate in Demonstration Project for Japan-Australia Hydrogen Supply Chain Development

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) will participate in the demonstration project to be implemented by Kawasaki Heavy Industries, Ltd. (hereinafter, “Kawasaki Heavy Industries”), Electric Power Development Co., Ltd. (hereinafter, “J-POWER”), Iwatani Corporation (hereinafter, “Iwatani”), Marubeni Corporation (hereinafter, “Marubeni”), and the Australian company AGL Energy Limited (hereinafter, “AGL”) to develop an international supply chain that encompasses hydrogen refining from lignite in the Latrobe Valley of Victoria, Australia, converting it to liquid, and finally transporting it to Japan (hereinafter, “pilot phase”).

Together with these five companies, Sumitomo Corporation will utilize subsidies provided by the Australia’s Commonwealth government and the state government of Victoria to carry out a pilot demonstration of hydrogen refining, liquefaction, inland transportation and marine carrier transport, along with a commercialization study of this hydrogen supply chain. Construction of these demonstration facilities have already commenced from early 2019, and the first demonstrations of hydrogen production and transport are scheduled to be carried out between 2020 and 2021.

During the pilot phase, Sumitomo Corporation will take a lead role in communicating with the CarbonNet Project managed by Australia’s Commonwealth government and the state government of Victoria, aiming to establish an integrated CO2-free hydrogen supply chain for the commercial phase.

During this pilot phase, Kawasaki Heavy Industries and Iwatani will take a role overseeing the liquefied hydrogen loading terminal construction and evaluating its operations, while J-POWER will be responsible for the lignite gasification and hydrogen production. Marubeni will focus on identifying a future commercialization pathway for the commercial phase based on these demonstrations, and AGL will supply the lignite and provide a construction site for the gasification facility.

In May 2018, Sumitomo Corporation established a cross-functional group, the ‘Hydrogen Working Group,’ to enhance our network in the hydrogen community and centralize our hydrogen business opportunities.  Sumitomo Corporation itself will be accelerating its activities in this space to establish more effective engagement and get us closer to realizing a hydrogen-based society.

 

(Note) CarbonNet Project: a research and development project for the commercialization of CO2 recovery/storage, run by the Australian state of Victoria

 

 

 

[CO2-free hydrogen supply chain concept and demonstration segment]

 

*In addition to these demonstrations, Kawasaki Heavy Industries, J-POWER, Iwatani, and Shell Japan Ltd. have established the CO2-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA), which has begun demonstration projects with financial assistance from the New Energy and Industrial Technology Development Organization (NEDO).

 

■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This Project especially contributes to “Achieving Harmony with the Global Environment” “Contributing to the Development of Local Communities and Industries” and “Establishing a Foundation for Comfortable and Enriching Lifestyles”.

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