Sembcorp Industries, Mitsubishi and Chiyoda enter MOU to explore delivering decarbonised hydrogen into Singapore

Electricity advertisement for Sembcorp Industries. Note: Photo taken pre-CovidElectricity advertisement for Sembcorp Industries. Note: Photo taken pre-Covid

Sembcorp Industries’ subsidiary Sembcorp Utilities, Chiyoda Corp. and Mitsubishi Corp. have entered a memorandum of understanding to explore creating a commercial-scale supply chain to deliver decarbonised hydrogen into Singapore, the companies said in a filing to SGX Monday.

The project would use Chiyoda’s hydrogen storage and transportation technology, called SPERA Hydrogen, the filing said. The technology releases hydrogen from Methylcyclohexane (MCH), a type of liquid organic hydrogen carrier (LOHC) which can be handled as a liquid under ambient temperature and pressure, the filing 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,” the companies said.

Under the deal, Sembcorp will perform tests using its domestic power generation assets by blending carbon-neutral hydrogen with natural gas to decarbonise power generation, the filing said. Sembcorp will also supply the carbon-neutral hydrogen to customers, including on Jurong Island, for fuel, chemical feedstock and other applications, the filing said.

Mitsubishi will use its experience in the global energy and infrastructure business to develop the commercialisation of the overall supply chain to deliver the decarbonised hydrogen to Singapore, the filing said.

The agreement comes in the wake of the May announcement from the Japanese government of the Asia Energy Transition Initiative (AETI) to support sustainable economic growth and carbon neutrality in Asia, the filing said.

“The governments of Japan and Singapore have commenced dialogue on energy transition,” the filing said. “Under the AETI, Japan will support Singapore’s energy transition leveraged by Japanese companies’ technology, such as Chiyoda’s “SPERA Hydrogen.”