Sembcorp Industries signs MOU to explore bringing decarbonised hydrogen to Singapore

A SUBSIDIARY of Sembcorp Industries (SCI), Sembcorp Utilities, has signed a memorandum of understanding (MOU) with Chiyoda Corporation and Mitsubishi Corporation to explore the feasibility and implementation of a commercial-scale supply chain to deliver decarbonised hydrogen into Singapore.

In a joint statement on Monday, the companies said that the MOU represents a "strategically important step in the potential creation of a commercial-scale global supply chain for decarbonised hydrogen into Singapore."

The supply chain would utilise Chiyoda's "proven hydrogen storage and transportation technology", SPERA Hydrogen. The technology allows for hydrogen to be safely stored "under ambient temperature and pressure in large quantities for long periods of time and to transport hydrogen over long distances in the form of methylcyclohexane (MCH)".

The companies said: "The parties intend to undertake joint efforts to explore the most cost-effective hydrogen production in offshore locations for subsequent hydrogenation in these selected locations, and to ultimately ship MCH to Singapore for use."

SCI's role in the MOU enables it to potentially perform use tests via its domestic power generation assets, by blending carbon neutral hydrogen with natural gas to decarbonise power generation.

SCI could also potentially supply carbon-neutral hydrogen to customers both within and outside Singapore's Jurong Island for fuel, chemical feedstock and other applications, and support the growth of demand for the emerging hydrogen segment in Singapore and other markets.

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Mitsubishi's role in the collaboration would be to "leverage its experience in global energy and infrastructure business development to play a leading role in the commercialisation of the overall supply chain aimed to deliver decarbonised hydrogen to Singapore."

The companies noted in the statement that the Japanese Government had announced in May the Asia Energy Transition Initiative (AETI) that aims to support the achievement of sustainable economic growth and carbon neutrality in Asia, and that the governments of Japan and Singapore have commenced dialogue on energy transition.

"Under the AETI, Japan will support Singapore's energy transition leveraged by Japanese companies' technology, such as Chiyoda's 'SPERA Hydrogen' and commercialisation thereof," the companies added.

SCI shares closed at S$1.82 on Monday down 0.5 per cent, before the announcement.