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Sumitomo and JGC Holdings sign FEED contract for hydrogen project

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Sumitomo Corporation and JGC Holdings Corporation and Construction (EPC) business of JGC Group have signed a contract with Front End Engineering and Design (FEED) for a hydrogen based project proposed by Sumitomo Corporation in Gladstone, Australia.

This project is part of a larger initiative that aims, in the long term, to create local hydrogen production and consumption in Gladstone by extracting hydrogen from the electrolysis of water using solar PV as the key source of energy.

The initial hydrogen production plant plans to manufacture 250-300 tons of hydrogen per year, with plans to expand production. In addition to producing hydrogen at the initial site, Sumitomo are generating hydrogen demand in the area at the same time.

Sumitomo Corporation expects hydrogen to be one of the most significant sources of energy in the future and supports hydrogen based businesses such as local manufacturing and distribution projects and broad scale supply chain projects that leverage regional energy needs and hydrogen characteristics.

In order to make a substantial contribution to the accomplishment of the long-term targets for climate change reduction, “Carbon neutralisation in2050” and “Realisation of a sustainable energy cycle” Sumitomo will intensify their efforts to materialize a hydrogen society by supporting hydrogen-related enterprises.

As one of the main concerns (materiality) to be tackled as a corporate group, the JGC Group is making comprehensive efforts to extend the use of hydrogen energy, which is expected to be an energy source that does not produce CO2 when burned, and ammonia, which is expected to be one of the most promising hydrogen energy carriers in hydrogen transport, where economic and safety problems occur.

Arnes Biogradlija

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