The UK has landed a major investment commitment from one of Japan’s leading trading firms, Sumitomo Corporation, with a £7.5 billion pledge set to support infrastructure and clean energy projects across the country.
The agreement was formalised on Wednesday, 9 July, in Tokyo, where Minister for Investment Baroness Poppy Gustafsson signed a memorandum of understanding (MoU) alongside Sumitomo’s Energy Transformation Group CEO Mr Hajime Mori, Europe CEO Mr Hiroyuki Koike, and senior members of the company’s energy division.
Sumitomo aims to facilitate the £7.5 billion in investments by 2035, with the funds expected to drive projects in priority sectors such as offshore wind and hydrogen, which are key pillars in the UK’s clean energy ambitions. The move aligns with the government’s recently published Modern Industrial Strategy and its Ten-Year Infrastructure Strategy, both of which seek to strengthen long-term business investment in growth areas.
Speaking from Tokyo, Baroness Gustafsson said: “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,” she added.
This latest development comes on the heels of a Deloitte report which placed the UK in joint-first place as the most attractive investment destination, offering further evidence that confidence in the British economy remains high.
The MoU with Sumitomo not only commits to new ventures but also includes support for existing investments in areas such as decarbonisation, carbon capture, hydrogen, and clean technology, sectors where the Japanese firm is already active in the UK.
Hajime Mori, Managing Executive Officer and Group CEO of Sumitomo’s Energy Transformation Business Group, commented: “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 Office for Investment, we will continue to leverage our strengths to drive growth in the clean energy sector in the UK.”
The investment is expected to support the UK’s ambition to become a global leader in clean energy, helping to power homes and businesses with renewable sources and reducing long-term reliance on fossil fuels.
The collaboration also enhances existing UK-Japan ties and builds on recent milestones such as the Industrial Strategy Partnership and Economic 2+2 agreements signed earlier this year. It further follows the UK’s ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is forecast to add £2 billion annually to the economy over time.
The announcement comes during Baroness Gustafsson’s trip to Japan and South Korea this week, where she is meeting with investors and industry leaders to encourage additional investment into the UK.
With trade between the UK and the Asia-Pacific region already valued at over £135 billion, the deal with Sumitomo is expected to deepen that relationship and bring further benefits to both economies.
The agreement will play a critical role in delivering the government’s “Plan for Change” agenda, aimed at reshaping the country’s economy, supporting innovation, and creating high-value, sustainable jobs across the nation.
