Japanese energy company, ENEOS, has begun a joint study with Australian utility, Origin Energy, for the development of a Japan-Australia CO2-free Hydrogen Supply Chain in Queensland. A memorandum of understanding has been signed to conduct a study on a potential business collaboration for the development of a CO2-free hydrogen supply chain between Japan and Australia.

The two companies will jointly examine the potential for the reliable supply of affordable hydrogen made with renewable energy in Queensland. Origin Energy will focus on the use of renewable energy supply and water electrolysis cells for hydrogen production, while ENEOS will be responsible for the more efficient production of methylcyclohexane (MCH). The latter will also aid maritime transport of MCH as a form of hydrogen storage and transport from Australia to Japan. Toluene separated in the dehydrogenation process will be returned to Australia for repeat use as a raw material in MCH production.

Queensland has been proactive in the development of renewable energy sources, particularly solar power. The state government is promoting hydrogen industry development by launching various programs including the 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 may also be utilized for hydrogen export.

ENEOS has an existing array of petroleum-related infrastructure, including tankers, storage tanks, and dehydrogenation facilities, which can be utilized in the CO2-free hydrogen supply chain. This will enable the development of a new energy supply system while curbing new investment. As society is moving rapidly towards hydrogen to meet decarbonisation targets, ENEOS is striving to develop a CO2-free hydrogen supply chain in Japan and overseas.

Origin Energy is a leading integrated energy company in Australia with extensive experience ranging from natural gas exploration and production, generation, and wholesale to electricity and gas retailing. Recently, the utility has also signed a memorandum of understanding with global shipping company Mitsui O.S.K. Lines to investigate opportunities to develop the supply chain to support export-scale green ammonia in Australia.