Japanese engineering company JGC Corporation has secured a front-end engineering design (FEED) contract with compatriot firms ENEOS and Sumitomo for a green hydrogen production plant in Malaysia.
ENEOS and Sumitomo, in collaboration with Malaysia’s SEDC Energy (SEDCE), are working on establishing a CO2-free hydrogen supply chain in which the hydrogen produced using electricity from renewable energy sources from hydroelectric power plants is converted to Methylcyclohexane (MCH), one of the most efficient forms of hydrogen transportation, for marine transportation to sites in Japan.
The memorandum of understanding (MoU) for the project was signed in 2020, followed by the feasibility study that commenced in January 2021.
At the end of 2023, ENEOS, Sumitomo, and SEDCE confirmed their collaboration on the establishment of CO2-free hydrogen supply chain by signing a joint development agreement and deciding to initiate the FEED phase of the project.
Following its support for the project since the feasibility study, JGC has now been awarded the FEED contract.
The planned green hydrogen plant will produce approximately 90,000 tons per year of clean hydrogen, including 2,000 tons of hydrogen for local consumption in Sarawak.
Sumitomo is leading the evaluation of the project feasibility and financing arrangements. ENEOS is in charge of the technical part of MCH production and maritime transportation to Japan while SEDC Energy is responsible for securing electricity and the technical part of hydrogen production.
The partners aim to commence the commercial operation by 2030.