Clean hydrogen supply chain in Malaysia with Sumitomo, ENEOS and SEDC Energy

Sumitomo Corporation, ENEOS Corporation, and SEDC Energy Sdn Bhd have officially inked a Joint Development Agreement for the establishment of a clean hydrogen supply chain in Malaysia. This collaborative effort aims to leverage renewable energy sources, particularly hydropower in Sarawak, to produce approximately 90,000 tons per year of clean hydrogen, with an additional 2,000 tons for local consumption in Sarawak.

The process involves converting the produced hydrogen into MCH (methylcyclohexane), an efficient form of hydrogen transportation, for export to Japan. The project, encompassing Front End Engineering Design (FEED), is slated for commercial operation commencement by 2030.

Sumitomo Corporation will spearhead the evaluation of project feasibility and financing arrangements, while ENEOS will lead in the technical aspects of MCH production and maritime transportation to Japan. SEDC Energy will play a crucial role in securing electricity and take the lead in the technical facets of hydrogen production.

Sarawak, with approximately 3.5GW of operational hydropower plants, provides a stable renewable-energy source for the project. The consistent output of hydropower ensures stable clean hydrogen production. The chosen location, Bintulu, Sarawak, boasts a well-equipped petrochemical industrial park with facilities suitable for MCH exports. Notably, Sumitomo Corporation Group’s existing engagements in aluminum smelting and manganese alloy manufacturing in Sarawak further strengthen the project’s foundation.

Sumitomo Corporation sees hydrogen as a pivotal future energy source for decarbonized societies. Their multifaceted approach includes locally produced and consumed hydrogen projects, large-scale hydrogen value-chain projects, and investments in new technologies. The utilization of MCH as an efficient mode of hydrogen transportation aligns with their vision of producing and transporting clean hydrogen in a highly competitive manner. By driving this initiative and other hydrogen-related projects, Sumitomo Corporation aims to contribute significantly to decarbonization and climate change mitigation, fostering a sustainable energy cycle.