Japanese trading house Sumitomo Corp. has signed a wide-ranging memorandum of understanding with the United Kingdom government’s Department for Business and Trade to invest £7.5 billion ($9.6 billion) in U.K. infrastructure and clean energy projects by 2035, the company said in a statement.
The agreement, signed on July 9, commits Sumitomo and its business partners to expanding investments across sectors including offshore wind, hydrogen, carbon capture and storage, railway operations and next-generation energy technologies. It includes projects that are already underway.
A signing ceremony was held at the British Embassy in Tokyo, attended by representatives from Sumitomo and U.K. government officials.
Broad Clean Energy Push
The Japanese conglomerate has long operated in the U.K. and plans to deepen its presence through major renewable energy and decarbonization initiatives.
These include stakes in the Galloper and Five Estuaries offshore wind farms, as well as carbon dioxide storage licenses in the North Sea and hydrogen projects near the Bacton Gas Terminal.
Sumitomo also supports the Peak Cluster CO₂ transport project and is working with Tokamak Energy on fusion energy development. Through its venture capital arm, Presidio Ventures, the company plans to expand investment in U.K. startups focused on energy transition and technology.
In the rail sector, Sumitomo operates the Elizabeth Line on behalf of Transport for London, further embedding itself in the U.K.’s transport infrastructure.
Government Backing and Strategic Alignment
The U.K. government has expressed strong support for the initiative, aligning with its Modern Industrial Strategy that prioritizes clean energy and infrastructure investment.
“This £7.5 billion investment from Sumitomo Corp. is the latest example of the strength of U.K.-Japan cooperation on clean energy infrastructure,” said Emil Levendoğlu, chargé d’affaires at the British Embassy in Tokyo. “It’s a concrete demonstration of the deepening partnership between our two countries.”
Martin Kent, His Majesty’s Trade Commissioner for Asia Pacific, added: “The U.K. is not only open for business, we are ready to build the future with the Asia Pacific.”
Japanese Executives Voice Commitment
Sumitomo executives highlighted the U.K.’s improving investment climate and strategic focus on clean energy as key factors in the decision.
“We have made active investments in several sectors in the U.K., including decarbonization and clean energy,” said Hajime Mori, managing executive officer and CEO of Sumitomo’s Energy Transformation Business Group. “Through this agreement, we will continue to leverage our strengths to drive growth in the clean energy sector in the U.K.”
Hiroyuki Koike, managing executive officer and general manager for Europe, added: “We hope this MOU will further strengthen the relationship between the U.K. government and Sumitomo Corp., and contribute to the development of the U.K. economy and society.”
The announcement builds on momentum from a U.K.-Japan offshore wind memorandum signed in March 2025 at the Economic 2+2 dialogue, aimed at bolstering bilateral clean energy collaboration.
