Commencing Study on Carbon Neutrality Project in Catchment Area of U.K.’s Bacton Gas Terminal

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo), jointly with Sumitomo Corporation Europe Limited (Head Office: London, U.K., CEO: Takashi Yamana) and Summit Exploration and Production Limited (Head Office: London, U.K., CEO: John Austin) (The three companies hereafter collectively referred to as “the Sumitomo Corporation Group”), will participate in a feasibility study on a regional carbon neutrality project involving the establishment of a hydrogen value chain centered on the Bacton Gas Terminal in the United Kingdom (hereinafter, “the Project”).

Situated in southeastern U.K., the Bacton Gas Terminal is a large-scale natural gas gathering site that handles around a third of the natural gas demand in the U.K. As part of the U.K. government’s efforts to shift to clean energy across the country, it is planning to establish a value chain encompassing manufacture, storage, and transportation of hydrogen at the Bacton Gas Terminal and its surrounding areas with the aim of promoting carbon neutrality. The Project is planning to cover blue hydrogen production based on natural gas reforming, carbon capture and storage (CCS), with later incorporation of green hydrogen production using offshore wind power. Early stage hydrogen production is planned to commence in 2030. The Bacton Gas Terminal has pipelines, which will potentially allow hydrogen to be exported to the European continent in the future.

The Sumitomo Corporation Group has been selected to participate in the feasibility study for the Project through a public solicitation issued by the Oil and Gas Authority (OGA), the U.K.’s administrative authority responsible for the UK’s oil and gas industry. Starting in 2022, 5 Special Interest Groups* will research regional hydrogen supply scenarios, formulate hydrogen demand models, and verify major infrastructure toward the goal of reaching a decision to commercialize the Project in 2025. The Sumitomo Corporation Group will proactively contribute as the lead company of the hydrogen supply Special Interest Group, and as a core member of the hydrogen demand Special Interest Group.

By collaborating with energy businesses and others around the world, the Sumitomo Corporation Group will work toward regional carbon neutrality in the U.K., the world’s leader in decarbonization. Additionally, the Group will take further steps to accumulate knowledge and experience in the business for Energy Innovation, which is one of its next-generation growth strategy themes,, as upheld in the Medium-Term Management Plan SHIFT 2023, and accelerate the creation of new businesses, while also endeavoring to contribute to resolving social issues.

Conceptual diagram of this project

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.