TOKYO — Oil company ENEOS and **company Sumitomo Corporation Ltd. will produce "green" petroleum products, according to plans announced Monday, Malaysia will produce hydrogen and export most of it to Japan, hoping to further diversify the fuel** necessary for decarbonization.
The two Japanese companies have signed an agreement with SEDC Energy, a subsidiary of the Sarawak Economic Development Corporation established in Sarawak, Malaysia. They will also consider setting up a special purpose vehicle with a Malaysian partner.
Electricity from the hydroelectric power plant will be used to electrolyze water to produce green hydrogen without emitting carbon dioxide. The target is to produce 90,000 tons per year by 2030. The size of the investment will be finalized in the future.
SEDC Energy will lead the power procurement and hydrogen production, with Eneos providing technical support for production. Eneos will also contribute know-how to transport hydrogen by sea at room temperature. Sumitomo Corporation will evaluate the feasibility and financing of the project.
Hydrogen burns without producing carbon dioxide and is essential for decarbonization in areas such as power generation, transportation, and manufacturing. But production is expensive in Japan because renewable energy costs are high in Japan.
Japan** has set a target of increasing the amount of hydrogen in Japan to 3 million tonnes per year by 2030, and Eneos and Sumitomo are working to produce and transport green hydrogen from around the world.
Pictured: Representatives of Sumitomo Corporation, ENEOS and SEDC Energy present their signed agreements at the ASEAN-Japan Economic Co-creation Forum in Tokyo on December 16.
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