Japan’s Eneos and Sumitomo Collaborate with Malaysia’s SEDC Energy for Green Hydrogen Production and Export

Japanese energy giants Eneos and Sumitomo Corp have embarked on a significant green hydrogen project in Malaysia, with a plan to export a substantial portion of this environmentally friendly fuel to Japan. This initiative, unveiled on Monday, is a strategic move to diversify Japan’s hydrogen supply, a key element in its decarbonization efforts.

The collaboration involves a partnership with SEDC Energy, an entity established by the Sarawak Economic Development Corp in Malaysia. The joint venture contemplates the creation of a special-purpose company to facilitate this initiative with the Malaysian counterpart.

In a unique approach to hydrogen production, the project will utilize electricity generated from hydroelectric plants. This renewable power source will be employed to electrolyze water, producing green h2 without the by-product of carbon dioxide emissions. The target is to achieve an annual production capacity of 90,000 tonnes by 2030. The specifics of the investment will be determined as the project progresses.

SEDC Energy will spearhead the efforts in securing power and producing hydrogen. Eneos will lend its expertise in production techniques and contribute its proprietary technology, which enables hydrogen transportation by sea at room temperature. Sumitomo’s role will encompass assessing the project’s feasibility and managing the financial aspects.

Hydrogen, celebrated for its clean-burning properties, is a crucial component for decarbonization across various sectors, including power generation, transportation, and manufacturing. However, Japan faces challenges in domestic hydrogen production due to the high costs of renewable energy.

In a significant development, representatives from Sumitomo, Eneos, and SEDC Energy have formalized their agreement at the ASEAN-Japan Economic Co-Creation Forum in Tokyo on Dec. 16.

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This initiative aligns with the Japanese government’s goal to boost the country’s hydrogen supply to 3 million tonnes per year by 2030. Both Eneos and Sumitomo are at the forefront of efforts to produce and transport green hydrogen globally, marking a pivotal step towards Japan’s sustainable energy future.

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