Japan’s Sumitomo to invest $10bn in UK’s clean energy projects

Japan’s Sumitomo has signed a memorandum of understanding (MoU) with the UK, committing to inject £7.5bn ($10bn) into infrastructure and renewable energy projects in the country by 2035.

The investment will specifically target offshore wind and hydrogen ventures.

The MoU, signed with the Department for Business and Trade, includes investments already made in existing businesses.

Sumitomo has made investments in the UK, including offshore wind power, carbon capture and storage, hydrogen and fusion energy.

Sumitomo energy transformation business group managing executive officer and group CEO Hajime Mori stated: “We have made active investments in several business sectors in the UK, including decarbonisation and clean energy.

“Under the UK’s new industrial strategy, clean energy is designated as a priority sector. Through this agreement with the Office for Investment, we will continue to leverage our strengths to drive growth in the clean energy sector in the UK.”

The agreement will play a key role in advancing the UK government’s Plan for Change and aligns with its goal to boost long-term business investment in key growth sectors, as outlined in the Modern Industrial Strategy and the Ten-Year Infrastructure Strategy.

The new alliance builds upon previous agreements such as the Economic 2+2 dialogues and Industrial Strategy Partnership signed with Japan earlier in 2025.

Minister for Investment Poppy Gustafsson stated: “The UK is a top investment destination for Japanese businesses, so I’m delighted to be in Tokyo to sign this new collaboration with Sumitomo Corporation. This is yet another major vote of confidence in our economy and shows international backing for our modern Industrial Strategy, which shows our Plan for Change is working.

“We’re serious about clean energy as a key growth sector, and deals like this create high-value jobs, encourage further investment into our world-leading industry and help boost economic growth right across the UK.”

In October 2025, Sumitomo formed a joint venture with CEP Solar to develop renewable energy projects in Virginia, US.