Sumitomo Green Strategy is quite Unconventional with Battery Recycling,Carbon Trading and Geothermal Energy ventures

Giant Japanese Kieretsu Sumitomo Corporation is rapidly accelerating its investments into the Green Industry.Japanese Giants like Sharp,Nissan,Toyota,Mistsubishi,Itochu etc have already made major inroads into different Green Sectors.Sumitomo is now trying to catch up  with its Japanese peers.However unlike Toshiba,it is focusing its efforts into Wind and Geothermal Energy and not into Solar Energy.Also in the Clean Transportation Sector,it is looking to recycle batteries.Sumitomo with its massive capabilities and reach is capable of becoming a big player in these areas.It is mostly looking towards international expansion and is partnering with Japanese and Chinese companies in different fields.

Renewable Energy

Sumitomo entered the Wind Energy Business in the US by buying a 42.5% stake in Stanton 120 MW Wind Farm in Texas.The Company already has Wind Assets in Japan and is partnering with Giant Chinese Utility Datang for building Renewable Energy Assets in China.Sumitomo has already built a 50 MW Wind Farm in Inner Mongolia with Datang and Kyushu Electric.Sumitomo is already strong in constructing geothermal plants having built a 140 MW Nga Awa Purua Geothermal Plant in New Zealand in 2 years flat.It also has contracts to build upto 530 MW of Geothermal Plants in Indonesia.In Phillipines the Company has partnered with another Japanese Trading Powerhouse Marubeni to finance Biomass and Waste to Energy Plants.However Solar Energy is strangely missing from Sumitomo’s strategy.It activity till now has been restricted to some small PV plants in Spain and trading of Solar Panels made by Sharp and others.Note other Global Conglomerates like ABB,GE,Siemens,LG,Samsung are in the process of making massive investments into the Green Industry.

Sumitomo Corp working with China Datang on green energy – Reuters

Sumitomo Corp said on Thursday it has agreed to develop clean-energy projects with a unit of China Datang Corp, the country’s second-largest power producer.Sumitomo, Japan’s No.3 trading firm, is looking to expand its renewable energy business, which includes wind, solar and biomass, in China’s fast-growing markets, a company spokesman said.

“We’re aiming to boost cumulative renewable energy capacity to 300 megawatts in China over the next two to three years, focusing on wind power, which is more advanced in China (than any other type of renewable energy source) in terms of legal infrastructure,” the spokesman said.

Energy Storage

The company has been not very proactive in this area but is slowly revving up.It has started a JV with Nissan to reprocess used Lithium Batters for Electric Vehicles.Note EVs and Batteries are going to be one of the biggest Green Sectors with huge subsidies from governments.Nissan already has a JV with NEC to produce Car Batteries.Sumitomo is also looking to mine Rare Earth Minerals in Kazakhstan.These Rare Earth Minerals are essential for Production of Electric Vehicles and China currently has a virtual monopoly in this area.

Nissan and Sumitomo Establish Joint Research Company  for Promotion of ‘4R Energy’ Business

Nissan Motor Co., Ltd. and Sumitomo Corporation today announced that a new joint-venture company was established on September 14th. The company will conduct research on the second-life use of lithium-ion batteries that have been used previously in electric cars.Naming a second-life business for recyclable advanced lithium-ion batteries as the “4R Energy” business in October 2009, both companies started a joint study to “Reuse, Resell, Refabricate and Recycle” the lithium ion batteries used in electric cars.

Carbon Trading

Sumitomo Mitsui which is one of the biggest banks in the world is setting up Carbon Credit Trading Business.With its origins as a Trading Company,Trading of Carbon is very compatible.While I am no fan of the CDM,Carbon Credit is set to become even a bigger business if USA passes a cap and trade law.Sumitomo is partnering with local banks to set up Carbon Credit Divisions in Emerging Markets like Malaysia and Russia

Sumitomo, Malaysian groups tie up for carbon deals – WBCSD

Sumitomo signed a memorandum of understanding with the Federation of Malaysian Manufacturers (FMM) and the Green Purchasing Network Association Malaysia (GPNM), with the aim of expanding its business further in Southeast Asia.The tie-up will use FMM’s domestic membership of over 2,400 companies, GPNM’s expertise in purchasing environmentally friendly products and services, as well as Sumitomo’s financing and experience in CDM projects.Japan’s third largest trading company signed an agreement with Russia’s Sberbank last month to work together on carbon credit trading.