JCorp and Sojitz go into MOU for decarbonisation initiatives in Johor

• "We are hopeful that this collaboration will contribute to the development of the hydrogen supply chain in Johor and for the region."

KUALA LUMPUR (Sept 27): Johor Corp (JCorp), the state investment arm of Johor, and Sojitz Corp have signed a memorandum of understanding (MOU) to conduct a three-year joint feasibility study of decarbonisation via the utilisation of hydrogen fuel in Johor.

JCorp was represented by JLand Group Sdn Bhd (JLG), the group’s real estate and infrastructure arm, while Sojitz was represented by its regional headquarters for Asia and Oceania, Sojitz Asia Pte Ltd. 

Under the strategic collaboration, JLG and Sojitz will work together on several decarbonisation initiatives in a bid to create a sustainable supply chain in hydrogen fuel from ammonia importation.

The signing ceremony was witnessed by Johor Chief Minister Datuk Onn Hafiz Ghazi and the chairman of the Johor Investment, Trade and Consumer Affairs Committee, Lee Ting Han.

JCorp president and chief executive officer and JLG chairman Datuk Syed Mohamed Syed Ibrahim said: “The MOU signifies a major milestone as we embark on our journey towards the nation’s net zero carbon emissions [target] by 2050. 

“This strategic initiative with Sojitz is in line with JCorp’s commitment to establishing the sustainability agenda across our business value chain. We are hopeful that this collaboration will contribute to the development of the hydrogen supply chain in Johor and for the region.

“A lot of pressure has been placed on the logistics sector to decrease the carbon footprint in their operations. This signing is a right step towards advancing our economies from fossil-based fuels to alternative energy. It is not just an investment into future-proofing and providing sustainability to JCorp’s businesses, but also to drive the new economy for the state while fulfilling our ESG commitments to creating a greener energy for future industries and generations to come,” he added.

JCorp real estate and infrastructure division director Datuk Akmal Ahmad said: “JLG’s collaboration with Sojitz demonstrates a focused effort and commitment to paving the way for sustainable industrial growth through clean energy. 

“As Johor aspires to reduce greenhouse gas emissions, improve energy efficiency and transition its power generation portfolio towards net-zero carbon emissions, this feasibility study is a clear action on our part towards potential utilisation of hydrogen fuel to achieve this ambition.”

A key objective of the MOU is to supply green energy to various industries in Johor. It aims to work towards the development of an ammonia-receiving terminal, bunkering supply base, ammonia-fired gas turbine power plant to supply green power to industry customers, and a comprehensive decarbonisation plan for JCorp’s port operations to establish a carbon-neutral port within the Tanjung Langsat Port Terminal (TLPT).

The TLPT, at which the study site will be located, is an essential and strategic pathway for marine transportation, giving rise to the potential for ammonia bunkering and supply to the nearby industrial complex. 

This also promotes industry investment opportunities through the procurement and import of clean ammonia from international and domestic markets to Johor. Ammonia, a compound of hydrogen and nitrogen, emits no carbon dioxide when combusted, and therefore has long been considered as a next-generation fuel for thermal power generation and large ocean-going vessels. Ammonia is also expected to play a role as an energy carrier for hydrogen since it is easier to liquefy and transport than hydrogen.

For a bit of background, Sojitz promotes the development of a value chain using next-generation fuels such as hydrogen, utilising its business experience in various industries in Asia and all over the world. In this collaboration, Sojitz will lead the negotiations with the hydrogen and ammonia production site, examining optimal transportation methods, and estimating economic feasibility.