Japanese trading house Sumitomo Corp [9053:JP] and oil company ENEOS [5020:JP] have agreed to collaborate on manufacturing green hydrogen in Malaysia, as reported by Nikkei Asia on December 19. The two companies have entered into an agreement with SEDC Energy, a subsidiary of Malaysian government-owned energy firm Sarawak Economic Development. Under the agreement, SEDC Energy will be responsible for power procurement and hydrogen production, while ENEOS will provide technical support for the production. In addition, ENEOS will also contribute exclusive technology for the sea transport of hydrogen at room temperature, paving the way for exporting green hydrogen to Japan. Sumitomo’s role includes evaluating project feasibility and financing.

The three companies will use renewable power from hydroelectric plants to electrolyze water, producing green hydrogen without carbon dioxide emissions. They aim to reach a production capacity of 90,000 tons annually by 2030, with most of the green hydrogen produced to be shipped to Japan. The initiative would contribute to Japan’s ambition to increase the nation’s hydrogen supply to 3 million tons a year by 2030, compared with about 2 million tons at present. To achieve this target, Japan’s public and private sectors have made efforts to establish hydrogen supply chains across the world. Last month, Japan and South announced the concept of Hydrogen Ammonia Global Value Chain, aiming to develop a seaborne supply chain for green fuels from various parts of the world by 2030.

Sources:

https://asia.nikkei.com/Business/Energy/Japan-s-Sumitomo-and-Eneos-to-produce-green-hydrogen-in-Malaysia

https://www.reuters.com/business/energy/japan-aims-boost-hydrogen-supply-12-mln-t-by-2040-2023-04-04/

https://asia.nikkei.com/Spotlight/Supply-Chain/Japan-South-Korea-to-build-supply-chain-for-hydrogen-and-ammonia