PERTH (miningweekly.com) – Japanese oil company ENEOS Corporation has struck an agreement with ASX-listed Origin Energy to study the development of a carbon-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. Specifically, Origin will focus on use of renewable energy supply and water electrolysis cells for hydrogen production. ENEOS will be responsible for more efficient production of methylcyclohexane (MCH) and maritime transport of MCH as a form of hydrogen storage and transport from Australia to Japan.

The two companies will explore opportunities to access government support, including the Green Innovation Fund in Japan and the hydrogen hub project in Australia, to achieve early development of a carbon-free hydrogen supply chain.

“This is an exciting development for Queensland as we are working hard to develop our sustainable hydrogen industry and leverage the solar resources already developed and to be developed in the future,” Queensland Premier Annastacia Palaszczuk said.

“Since the launch of Queensland hydrogen strategy during my trade mission to Japan in 2018, we have seen a number of Japanese companies interested in developing a Queensland hydrogen industry with us.”

She noted that this study is unique as it explores one of the latest hydrogen transport and storage technologies which is the next step towards establishing a large-scale carbon-dioxide-free hydrogen business in Queensland.

The study will examine what existing infrastructure and transport options can be used and what gaps need to be filled along the supply chain. It will also highlight opportunities.

ENEOS already owns petroleum tankers, storage tanks and refineries used for export, which are expected to be used as the hydrogen supply chain develops and owns its own import terminals in Japan where they are looking to dehydrogenate.

The company has chosen Queensland owing to the state’s proactive government policy on hydrogen, abundant renewable resources and well-established infrastructure.

Minister for Energy, Renewables and Hydrogen Mick de Brenni said Queenslanders had a strong history of developing export industries.

“Australia's hydrogen industry is expected to contribute at least $11-billion to the national economy and generate around 7 600 jobs by 2050,” he said.

“We're making sure Queensland is in prime position to take advantage of this huge opportunity. Queenslanders know how to develop exports and the jobs that come with them, especially in our regions.

“We already have reliable, publicly-owned electricity generation and we already have outstanding water and port infrastructure. Our location on Australia’s east coast is also a bonus - with close proximity to key Asian markets, including Japan, where hydrogen demand is expected to be high.”

In 2020, Japan was Queensland's second-largest goods export destination, valued at A$8.2-billion, representing 13.0% of Queensland's total goods exports and 18.7% of Australia's total goods exports with Japan.