Sumitomo Corporation (hereinafter referred to as 'Sumitomo Corporation') is working with ENEOS Co., Ltd. (hereinafter referred to as 'ENEOS') and SEDC Energy Sdn Bhd (hereinafter referred to as 'SEDC Energy') to develop clean hydrogen (hereinafter referred to as 'clean hydrogen') using renewable energy. 1) We have concluded a joint development agreement (hereinafter referred to as the 'Agreement') to build a supply chain.

About joint development agreement to build a clean hydrogen supply chain

The clean hydrogen supply chain that will be jointly developed under this agreement will be approximately 90,000 tons per year (of which approximately 2,000 tons will be produced locally for local consumption in Sarawak State, Malaysia) using electricity derived from renewable energy generated by hydroelectric power generation. ) is a project that produces clean hydrogen, then converts it into MCH (methylcyclohexane) (2), which is an efficient form of hydrogen transportation, and transports it by sea to demand areas in Japan. From now on, we will begin the basic design (Front End Engineering Design) with the aim of starting hydrogen production by 2030. Sumitomo Corporation will lead the business evaluation and financing arrangement for the entire joint development scope and support power procurement. ENEOS will lead the engineering related to MCH production in line with the scale of Japan's demand, and SEDC Energy will lead the study on power procurement and hydrogen production.

Sarawak, Malaysia, has abundant water resources and industrial parks.

Sarawak has the potential for abundant hydropower resources, with a total of approximately 3.5GW of hydropower plants currently in operation, and it can be expected to secure electricity derived from renewable energy. Hydroelectric power generation has little fluctuation in output, so clean hydrogen can be produced stably. In addition, the proposed project site, Bintulu district in Sarawak, has a large petrochemical industrial park, which has the advantage of being able to utilize shipping facilities such as ports and piers when exporting MCH. The Sumitomo Corporation Group operates an aluminum ingot smelting business and a manganese-based ferroalloy manufacturing business in Sarawak, and will continue to work on business development in the state.

Next-generation energy business undertaken by the Sumitomo Corporation Group

The Sumitomo Corporation Group positions hydrogen as one of the important energies of the future in a decarbonized society, and is developing a large-scale value chain business that promotes local production for local consumption businesses that take advantage of the characteristics of regions and hydrogen, as well as large-scale value chain businesses that promote mass production, transportation, storage, and utilization. We are working on hydrogen-related business development from multiple angles, including investing in new technologies. We are also focusing on MCH as an efficient form of hydrogen transportation, and believe that by combining it with Sarawak's abundant hydropower resources, we will be able to quickly produce and transport competitive clean hydrogen. By promoting hydrogen-related businesses, including this one, we will continue to accelerate various initiatives in order to realize a sustainable energy cycle and significantly contribute to building a decarbonized society and mitigating climate change.

Ceremony at the 'Japan-ASEAN Economic Co-Creation Forum'

On December 16th, this project was introduced at the MOU photo ceremony held at the Japan-ASEAN Economic Co-Creation Forum in the presence of Minister of Economy, Trade and Industry Takeshi Saito.

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