Sembcorp Industries has entered strategic partnerships with the Japanese government and various corporations to progress hydrogen and other decarbonisation initiatives.
The collaborations 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 the latter to support projects developed by Sembcorp and Japanese companies with a focus on green hydrogen and ammonia. It had also signed MOUs with Sojitz Corporation and IHI Corporation.
Sembcorp group president and CEO Wong Kim Yin says the partnerships will enable the company to play a pivotal role in the decarbonisation of various industries, including power.
“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,” he adds.
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.
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The partnerships inked by Sembcorp 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 for the financial year ending Dec 31.
Shares in Sembcorp closed 1 cent lower or 0.35% down on oct 25 at $2.79.
