Sembcorp Industries (Sembcorp) announced today that it has entered strategic partnerships (refer to Appendix) with the Japanese government and various corporations, to progress hydrogen and other decarbonisation initiatives. The hydrogen supply chain will be a prominent focus across all partnerships.
As a leading producer of renewable energy and the largest importer of natural gas in Singapore, Sembcorp is well-positioned to support the Singapore government’s newly outlined approach to develop hydrogen as a major decarbonisation pathway. The collaborations signed today will enable Sembcorp to access and leverage Japan’s highly advanced technology in hydrogen development and deployment.
The partnerships inked include:
•A Memorandum of Understanding (MOU) with the Japan Bank for International Cooperation (JBIC), for JBIC to support projects developed by Sembcorp and Japanese companies, with a focus on green hydrogen and ammonia.
•An MOU with Sojitz Corporation (Sojitz) to partner on new renewable energy projects, including green hydrogen production, battery energy storage systems, and net zero industrial parks, in Asia Pacific.
•An MOU with IHI Corporation (IHI) to collaborate on an integrated green ammonia supply chain, both upstream and downstream.
•Advancing the development of hydrogen imports via methylcyclohexane, a type of liquid organic hydrogen carrier, with the commencement of Pre-FEED studies. This is a key milestone under the MOU with Mitsubishi Corporation (Mitsubishi) and Chiyoda Corporation (Chiyoda) signed in October 2021.
The MOU with JBIC was signed on the sidelines of the opening day for the Singapore International Energy Week, witnessed by Second Minister for Trade and Industry of Singapore Dr Tan See Leng, the Ambassador of Japan to Singapore His Excellency Hiroshi Ishikawa, Managing Director and Chairman of the Board of JBIC Mr Tadashi Maeda, and Group President & CEO of Sembcorp Mr Wong Kim Yin. This was followed by the presentation of signed MOUs between Sembcorp and the other Japanese partners to Minister Tan and His Excellency Hiroshi Ishikawa.
Wong Kim Yin, Group President & CEO, Sembcorp Industries, said:
“The partnerships forged today align with Sembcorp’s brown to green transformation, and will enable us to play a pivotal role in the decarbonisation of various industries, including power. We are pleased to be the first Singapore company partnering JBIC on exploring hydrogen and its derivatives as the most promising substitute for natural gas. Our new energy collaborations with Japan’s leading corporations will benefit from JBIC’s support, and will also leverage our proven expertise in renewables to support Singapore’s ambitions to form and scale up low-carbon hydrogen supply chains. Sembcorp remains committed and is well-placed to enable the nation’s transition to net-zero emissions.”
Singapore’s power sector currently makes up 40% of the nation’s total carbon emissions. Hydrogen is the most promising alternative fuel to natural gas, which addresses 95% of the country’s energy needs today. Sembcorp’s various partnerships inked today will underpin the Singapore government’s ambitions for low-carbon hydrogen to potentially support up to 50% of its power needs by 2050.
The signed partnerships are not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2022.
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