Sumitomo, ENEOS Partner with JGC for FEED Work on Green Hydrogen Plant in Malaysia

On April 2, 2024, JGC Holdings Corporation, under the leadership of Masayuki Sato, who serves as Representative Director, Chairman, and CEO, disclosed an important development. The Front End Engineering Design (FEED) for a green hydrogen and MCH production plant in Malaysia has been awarded to JGC Corporation. Farhan Mujib, serving as Representative Director and President, leads JGC Corporation, which oversees the overseas engineering, procurement, and construction (EPC) business within the JGC Group. This prestigious project is a collaboration between ENEOS Corporation (ENEOS) and Sumitomo Corporation (Sumitomo).

ENOS and Sumitomo, in partnership with SEDC Energy—a firm operated by the state government of Sarawak, Malaysia—aim to establish a CO2-free hydrogen supply chain. The initiative involves producing CO2-free hydrogen using electricity sourced from renewable energy, specifically from hydroelectric power plants, and converting it into MCH (Methylcyclohexane), a highly efficient form of hydrogen transportation, for marine shipment to various locations in Japan. MCH, being a liquid at room temperature and pressure, possesses distinct advantages such as ease of handling, storage, and transportation, with a volume 500 times less than that of hydrogen gas.

The green hydrogen plant is slated to produce approximately 90,000 tons of CO2-free hydrogen annually, destined for conversion into MCH. Out of this hydrogen production, 2,000 tons per year will be allocated for local use. JGC has been actively involved in supporting this project since its inception, starting from the feasibility study phase. The recognition of JGC's exceptional engineering prowess and project execution capabilities played a pivotal role in securing the FEED contract.

Currently, a multitude of sustainable projects, encompassing hydrogen and fuel ammonia, are in the pipeline not only in Malaysia but also across other nations. Through the successful completion of this FEED, the JGC Group is positioned to support the growth of its clients' endeavors in the sustainable sector, encompassing hydrogen and ammonia production. This endeavor will ultimately play a pivotal role in advancing towards the achievement of a decarbonized society.

Sumitomo spearheads the assessment of project feasibility and financial arrangements. ENEOS oversees the technical aspects of MCH production and maritime transportation to Japan, while SEDC Energy takes charge of securing electricity and the technical aspects of hydrogen production.

Sumitomo Corporation stands as one of the globe's premier sogo shosha general trading companies, renowned for its diversified operations. Established in 1919, it holds the distinction of being a member company within the esteemed Sumitomo Group.

Being Japan's foremost oil company, ENEOS Corporation strategically engages in the development and production of top-tier products. This involves leveraging cutting-edge additives and base oil technology acquired through collaborative engineering and research partnerships with leading Japanese automotive manufacturers.