ENEOS and Neoen begin study on Japan-Australia CO2-free hydrogen supply chain in South Australia

ENEOS Corporation has signed a memorandum of understanding with Neoen Australia Pty Ltd. (Neoen) to perform a feasibility study on the establishment of a CO2-free hydrogen supply chain between Japan and Australia.

ENEOS is working to build a CO2-free hydrogen supply chain in Japan and elsewhere in preparation of a hydrogen-oriented society moving toward decarbonization. Outside of Japan, a diverse network of alliances in Australia, the Middle East, and Asia is being used to verify the feasibility of a large-scale supply of cost-competitive hydrogen.

As part of these endeavors, ENEOS intends to perform a feasibility study for collaborating with an Australian firm to develop a supply chain for CO2-free hydrogen (green hydrogen) produced using renewable energy. This will be accomplished by using Australia’s exceptional potential for cost-competitive hydrogen generation, which is a result of the country’s ideal climate conditions, including wind and sunlight, and wide territory.

Neoen is a global leader in independent renewable energy power generation, with over 2 GW of renewable energy generating in operation or under construction in Australia. The company is currently building two ground-breaking projects in South Australia: the Goyder Renewables Zone and the Crystal Brook Energy Park. These projects integrate wind, solar, and battery storage to create a reliable renewable energy power source, overcoming the constraints of wind or solar installations alone.

The two firms will collaborate on the project to assess the possibilities for a reliable supply of affordable hydrogen generated from renewable energy in South Australia. Neoen’s research will focus on ensuring a consistent supply of renewable energy and developing water electrolysis cells for hydrogen production. ENEOS will be responsible for more efficient methylcyclohexane (MCH) synthesis and maritime transport of MCH from Australia to Japan as a type of hydrogen storage and transit.

South Australia has one of the most developed battery storage infrastructures in the world. Additionally, the state government is pushing the development of next-generation energy businesses, such as hydrogen and ammonia, and is preparing to expand facilities at its main port, which will serve as a hub for hydrogen export to Japan.

The two companies will make extensive use of government assistance, notably Japan’s Green Innovation Fund and Australia’s hydrogen hub initiative, to accelerate the establishment of a CO2-free hydrogen supply chain between Japan and Australia. This effort is congruent with Sustainable Development Goals (SDGs) 7 of the United Nations.

Affordable and renewable energy, sustainable cities and communities, and climate action are among the topics covered. ENEOS is promoting hydrogen use and conducting a cooperative study with Neoen to contribute to the creation of a low-carbon, recycling-oriented society. Overview of the CO2-free hydrogen supply chain and the scope of the study conducted in collaboration with Neoen:

1. In Australia, producing green hydrogen from renewable energy sources using water electrolysis.
2. Conversion of created hydrogen to MCH, an efficient method of storing and transporting hydrogen
3. Tanker transfer of MCH to Japan
4. MCH receipt, storage, and dehydrogenation at ENEOS refineries, as well as the delivery of hydrogen for industrial usage at neighboring thermal power plants, steel mills, and other industrial facilities.
5. Toluene recovered during the dehydrogenation process is returned to Australia for use as a raw material in the manufacture of MCH.
   
   ENEOS’s existing petroleum-related infrastructure, which includes tankers, storage tanks, and dehydrogenation facilities, can be used to construct a CO2-free hydrogen supply chain, enabling the establishment of a new energy supply system while limiting new investment.