September 3, 2021

ENEOS Corp begins study into Aus-Japan hydrogen supply chain

Pictured: a droplet of water. Water is a compound chemical formed from when two atoms of the chemical element oxygen binds with one atom of the chemical element. As such, ordinary water is a potential feedstock for the production of hydrogen. Photo credit: Jose Manuel Suarez via the Wikipedia entry “Water”. Licensed under Creative Commons 2.0.

Interest in Australia as a source of green energy continues to increase as Eneos Corp of Japan, a vertically-integrated petro-chemical group, has entered into an agreement with Australia’s Origin Energy to investigate a hydrogen supply chain.

ENEOS reports that it is looking to develop a hydrogen supply chain sourcing large-scale supply of cost-competitive hydrogen from a variety of regions to Japan. Australia is of interest to ENEOS because of its “excellent potential for cost-competitive hydrogen production due to its favorable climate conditions, including wind and sunlight, and expansive land”.

The study will examine:

  • Manufacture of green hydrogen from renewable energy sources and splitting water into hydrogen and oxygen
  • Conversion of manufactured hydrogen into methylcyclohexane (MCH)- an organic liquid that is also a toxic, colourless solvent – which can be used as a “hydrogen carrier” (a chemical that , in its molecular structure, contains hydrogen that can be extracted at a later date). Hydrogen carriers are used because they are often easier and cheaper to handle than hydrogen itself
  • Maritime transport of MCH to Japan in tankers
  • Receipt, storage and dehydrogenation of MCH at ENEOS refineries and supply of hydrogen for industrial use at nearby thermal power plants, steel refineries and other industrial plant
  • Recycling of toulene (a by-product of extracting hydrogen from MCH) and returning it to Australia re-uses as a component of a new batch of MCH

ENEOS and Origin will jointly examine the potential for the reliable supply of “affordable hydrogen” made with renewable energy in Queensland. Origin will focus on the supply of renewable energy and electrolysis for hydrogen production while ENEOS will focus on efficient production of MCH and maritime transport.

“Queensland is well advanced in the development of renewable energy sources, particularly solar power. The state government is promoting hydrogen industry development leveraging these renewable energy sources. Under its own hydrogen industry strategy, the government has promptly launched various programs including establishment of the Hydrogen Industry Development Fund to support hydrogen business and develop areas dedicated to large-scale hydrogen business across the state. In addition, existing infrastructure such as storage tanks, shipping and port facilities currently used for coal and natural gas can be utilized for hydrogen export,” ENEOS said in statement.

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