Japan’s Sumitomo Corporation has signed a five-year memorandum of understanding (MoU) with the UK. They’re pledging to invest £7.5 billion (about $10 billion) in these infrastructure and renewable projects by 2035. This initiative complements the UK government’s efforts to raise its clean energy jobs agenda. It is intended to increase private long-term capital investment in high-growth industries.
The agreement, which was formalized by Sumitomo’s Energy Transformation Group and Energy Transformation Business Group, highlights the company’s ongoing commitment to the UK market. Hajime Mori, managing executive officer and group CEO of Sumitomo’s Energy Transformation Business Group, emphasized the company’s active role in various sectors, stating that they have been investing significantly in decarbonisation and clean energy.
Strategic Investments in Renewable Energy
Fast forward to October 2025, and Sumitomo has established a joint venture with CEP Solar. This unique partnership has committed to working together to develop utility-scale, renewable energy projects in Virginia. This strategic partnership provides Sumitomo with an opportunity to increase its footprint in renewable energy sectors. It’s a critical component of their overall international agenda, both domestically and internationally.
The UK’s designation of clean energy as a priority sector under its new industrial strategy underscores the significance of this investment. New plans by the UK government released last week promise to bring clean energy projects at the centre of its economic agenda. Sumitomo’s commitment will be the spark to make this happen.
“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.” – Poppy Gustafsson
Enhancing Economic Growth
Sumitomo’s investment will provide a major boost to economic development throughout the UK. More importantly, it will generate high-value job opportunities and help him and his team attract more investments. The UK is now the number one investment destination for Sumitomo. This partnership highlights their deep confidence in the UK’s strategic course and long-term commitment to sustainability.
The MoU covers the UK investments that Sumitomo has already made in its current UK companies. Given this strong groundwork, future development promises to be even more exhilarating. The alignment with the UK’s Modern Industrial Strategy and the Ten-Year Infrastructure Strategy highlights Sumitomo’s proactive approach to contributing to national goals.
Future Outlook
Sumitomo is continuing to play a leading role in the UK’s burgeoning clean energy sector. The company says it is dedicated to helping the UK achieve its decarbonisation targets. The anticipated capital investments will help move the UK government’s Plan for Change in the right direction. In addition, they will position Sumitomo to become a leading player in renewable energy markets worldwide.