Sumitomo Corporation has concluded a Memorandum of Understanding with LOTTE Chemical of the Lotte Group in Korea for collaboration in the hydrogen and ammonia fields.

Hydrogen and ammonia are expected to be energy sources that contribute to decarbonization in a wide range of fields, including transportation and power generation, as they do not emit CO2 during combustion. In particular, Japan and South Korea are expected to become large importers of hydrogen and ammonia as they accelerate their initiatives for mixed combustion and mono-fuel combustion of hydrogen and ammonia in the power generation sector, which is expected to create large-scale demand for hydrogen and ammonia in the future.

Sumitomo Corporation and LOTTE Chemical will jointly look into a wide range of business development opportunities for collaboration in the fields of hydrogen and ammonia, including (1) joint investment in hydrogen and ammonia production projects in Australia, Chile, and other regions and the establishment of value chains to Japan and Korea, (2) development of ammonia storage terminals in Japan and Korea, (3) commercialization of new hydrogen and ammonia-related technologies and their deployment in the Japanese and Korean markets, and (4) collaboration in the CCUS field.

As part of this cooaborationcollaboration, in August this year, Sumitomo Corporation, LOTTE Chemical, and Syzygy Plasmonics, a U.S. hydrogen technology startup with the world's most advanced photocatalytic technology, agreed to conduct the world's first joint demonstration test of hydrogen production by ammonia decomposition using photocatalyst in Korea.

Sumitomo Corporation aims to handle 300,000 tons of hydrogen by 2030 (Note 3), which is approximately 10 percent of the Japanese government's target for hydrogen imports, thereby securing a leading position in Japan.

LOTTE Chemical plans to produce, supply, and utilize 1.2 million tons of clean hydrogen by 2030, based on large-scale demand, a large-scale supply network, and eco-technologies.

Sumitomo Corporation and LOTTE Chemical will accelerate efforts to build a sustainable energy system to contribute significantly to the realization of a decarbonized society and mitigation of climate change in Japan and Korea, through the promotion of hydrogen and ammonia related businesses.