TOKYO — Oil company Eneos and trading house Sumitomo Corp. will produce “green” hydrogen in Malaysia and export much of it to Japan under plans announced Monday, hoping to further diversify the supply of the fuel essential for decarbonization.

The two Japanese companies have signed an agreement with SEDC Energy, a subsidiary of the Sarawak Economic Development Corp. set up by the Malaysian state of Sarawak. They will also consider establishing a special-purpose company with the Malaysian partner.

Power from hydroelectric plants will be used to electrolyze water to produce the green hydrogen without emitting carbon dioxide. The aim is to produce 90,000 tonnes a year by 2030. The scale of investment will be finalized moving forward.

SEDC Energy will take the lead on power procurement and hydrogen production, with Eneos to provide technical support for the production. Eneos will also contribute proprietary technology for transporting the hydrogen by sea at room temperature. Sumitomo will evaluate project feasibility and financing.

Hydrogen, which does not produce CO2 when burned, is essential for decarbonization in such fields as power generation, transportation and manufacturing. But it is expensive to produce in Japan, where renewable-energy costs are high.

The Japanese government has set a goal of increasing the supply of hydrogen in Japan to 3 million tonnes per year by 2030, and Eneos and Sumitomo are working to produce and transport green hydrogen from around the world.