ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) and Malakoff Corporation Berhad (headquartered in Kuala Lumpur ; Anwar Syahrin Abdul Ajib, Managing Director / Chief Executive Officer; hereinafter “Malakoff”) entered into a Memorandum of Understanding (“MOU”) to conduct a joint feasibility study for decarbonization by utilizing hydrogen/ammonia in the State of Johor, Malaysia (“Feasibility Study”) during the Asia Green Growth Partnership Ministerial Meeting (“AGGPM”) 2022 Public-Private Forum (*1) hosted by Ministry of Economy, Trade and Industry, Japan (“METI”).

The objective of this MOU is to record the understanding between Malakoff and ITOCHU in respect of the development of an ammonia receiving terminal and the decarbonization of coal-fired power plants owned by Malakoff by way of ammonia co-firing and development of a new combined cycle gas turbine (“CCGT”) power plant utilizing hydrogen, subject to the outcome of the Feasibility Study and further discussions between the parties. This decarbonization initiatives is in line with Malaysia’s commitment of becoming a carbon neutral nation by 2050 and falls under the Asia Energy Transition Initiative (“AETI”) supported by METI.

The Feasibility Study site is located at the Johor Straits which is essential for marine transportation and there is a huge potential for the development of an ammonia receiving terminal not only for co-firing/ hydrogen usage, but also for bunkering opportunities and supply to industrial complex nearby.

ITOCHU highlights a continued contribution and commitment to the SDGs as one of its basic policies in Brand-new Deal 2023, its medium-term management plan, and as part of these efforts, is in the process of promoting a next-generation fuel value chain using hydrogen and ammonia. Through this project, it will respond to market demand in Malaysia where energy conversion is targeted –as well as take into consideration the cooperation with the ‘Integrated Project' which consists of the development of ammonia fueled ships and the establishment of a global ammonia supply chain, which Itochu has initiated, and seeks to contribute to the creation of a decarbonized society.

Malakoff is Malaysia's leading independent power and water producer with core focus on power generation, water desalination, operation & maintenance as well as waste management & environmental services with effective capacity of 6,410MW of power production and 472,975 m³/day of water desalination across its existing fleets in Malaysia and in the Middle East.