Establishing a Joint Venture with Corvus Energy, a Manufacturer of Energy Storage Systems for Ships

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) concluded an agreement with Corvus Energy Holdings AS (hereinafter, “Corvus Energy”), a Norwegian supplier of energy storage systems (hereinafter, “ESS”^Note) for Marine industry, in order to establish a joint venture named “Sumisho Corvus Energy Co., Ltd.” (hereinafter, “Sumisho Corvus Energy”) as a company to sell ESS and provide the related maintenance service mainly in the Japanese market.

The International Maritime Organization (IMO), which is a specialized agency of the United Nations, adopted its strategy on the reduction of GHG emissions from ships in 2018, in which it set the following numerical targets: relative to the 2008 level, improve the average fuel efficiency of ships engaged in international shipping by 40% by 2030 and reduce their total annual greenhouse gas (GHG) emissions by half by 2050. In response, the shipbuilding and shipping industries are required to replace their fuels with more environment-friendly alternatives and to introduce equipment that helps reduce their GHG emissions. ESS is expected to improve the fuel efficiency of large ocean-going ships in combination with existing fuels, such as heavy oil and gas, and with next-generation fuels, such as ammonia and hydrogen, and also to contribute to zero GHG emissions as a power source for small fully electric coastal ships.

As its strong point, Corvus Energy is capable of developing ESS for a range of maritime applications, including for use in port and harbor equipment as well as for use in various ship types including container and cruise ships. The company has already provided its ESS for 400 or more projects, and the total operation hours of the supplied ESS have already exceeded 3 million hours. In 2020, Corvus Energy excessed an over 50% share in the world market of ESS for maritime applications.

Sumitomo Corporation and Corvus Energy have been conducting market research and sales promotion activities in Japan and in the Asian region since 2019. The newly established joint venture Sumisho Corvus Energy will sell Corvus Energy-made ESS and also provide technical support to customers. The company will conduct sales activities targeting both coastal and ocean-going ships by making use of Sumitomo Corporation’s customer network built through its ship-trading and ship-owning businesses.

Via Sumisho Corvus Energy, Sumitomo Corporation will contribute the low-carbonization and de-carbonization of Japanese maritime industry, while also working to create a new environment-friendly business in the maritime shipping and logistics field.

Note: An energy storage system (ESS) is a device made by combining a storage battery system with an electric power control system which stores electrical energy. Connected to the power system, it optimizes the operation of the power by store and release of electricity.

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 the following material Issues.

Achieving Harmony with the Global Environment

To realize recycling-oriented society and mitigate climate change, we are working to establish frameworks for the efficient use of resources and stable supply of renewable energy. In doing so, we will achieve growth in harmony with the global environment.

Contributing to the Development of Local Communities and Industries

We steadily procure and provide goods and services to meet the needs of people in various countries and regions and contribute to developing industrial platforms. Through these means, we will create a virtuous cycle in which we can grow and develop together with local communities.

Establishing a Foundation for Comfortable and Enriching Lifestyles

We strive to realize more convenient and comfortable lifestyles by providing goods and services for daily use while also responding to needs for high-quality lifestyles in order to support the physical and mental health of people around the world.

Providing Diverse “Accessibility”

We provide diverse accessibility to open up the possibility of creating new value. To this end, we will improve mobility for safe and efficient flow of people and goods, and expand the network connecting information and finance.

Developing Human Resources and Promoting Diversity

In order to create new value and innovation by allowing our diverse personnel to fully exercise their abilities in a variety of fields, we will promote the development and empowerment of human resources, which represent our most important management resources.

Enhancing Governance

We will enhance our ability to draft and implement strategies for achieving sustainable growth and to provide appropriate supervision of these strategies, all while maintaining transparency. In this manner, we will improve management efficiency and maintain sound management.