Sumitomo invests in US hydrogen producer

Japanese trading company Sumitomo Corporation announced Thursday a “strategic investment” in Independence Hydrogen to expand hydrogen operations in the US.

According to local subsidiary Sumitomo Corporation of Americas, Independence Hydrogen is a privately held company that manufactures and distributes gaseous hydrogen in a decentralised hydrogen business model.

“It operates a production facility in Petersburg, Virginia that recycles hydrogen, otherwise vented into the atmosphere as a waste product, into fuel cell grade hydrogen for customers in the material handling, mobility, remote critical infrastructure, and industrial gas sectors,” Sumitomo says.

Details of the deal, including investment size and closing timeline, have not been disclosed. Kallanish has contacted Independence Hydrogen for comment.

In a social media post, the hydrogen producer says the partnership shows Sumitomo “sees the immense potential” in its decentralised hydrogen production and distribution model, known as DeHy. “This investment allows IH to scale DeHy rapidly and bring clean hydrogen and energy resiliency to more communities faster,” it adds.

The hydrogen that is sourced from industrial activities is transported to end-users, which include material handling, mobility, remote critical infrastructure, and industrial gas companies.

Separately, Sumitomo confirmed an investment MOU with the UK government on clean energy projects, including one blue hydrogen production project. Sumitomo and its partners plan a hydrogen hub around the Bacton gas terminal, on the North Sea coast of Norfolk, which involves the production of hydrogen using natural gas, carbon capture and storage, and offshore wind.

The Japanese firm clarified that it “plans to participate in investment projects amounting to £7.5 billion [$10.17 billion] by 2035 – including investments already made in existing businesses.” The UK government said on Wednesday it had secured the investment from the company.  

Source:Kallanish