Sumitomo Corporation (SC), ENEOS Corporation and SEDC Energy have signed a joint development agreement for the establishment of a clean H₂ supply chain utilizing renewable energy in Malaysia.

The clean H₂ supply chain to be jointly developed under the Agreement aiming approximately 90,000 tpy of clean H₂ production (including 2,000 tons of H₂ for local consumption in Sarawak), converting the H₂ to MCH, an efficient form of H₂ transportation, and exporting MCH to Japan.

The clean H₂ will be electrolyzed by renewable energy from hydropower in Sarawak, Malaysia. We will begin the front-end engineering design (FEED), aiming to commence the commercial operation by 2030. SC will take lead in evaluating the project feasibility and financing arrangements. ENEOS will take lead in the technical part of MCH production, maritime transportation to Japan. SEDC Energy will be responsible for securing electricity and take lead in the technical part of H₂ production.

Approximately 3.5 GW in total hydropower plants are in operation in Sarawak, enabling to secure renewable-energy electricity. Since the hydropower has little fluctuations in its output, the clean H₂ can be stably produced. Bintulu, Sarawak where the project site is located has a large petrochemical industrial park, with facilities such as shipping equipment and port facilities that can be utilized for MCH exports. In addition, Sumitomo Corporation Group is engaged in aluminum smelting and manufacturing of manganese alloy in Sarawak state.