Key Takeaways
- ENEOS invests AUD $200M in green hydrogen production facility
- Project aims to produce 680kg hydrogen daily by 2026
- Uses LOHC technology for efficient hydrogen transport
- Creates 100+ specialist jobs in Queensland
- Strengthens Australia-Japan energy partnership
Japanese energy company ENEOS is investing AUD $200 million ($129.9M) in a green hydrogen production facility on Bulwer Island, Queensland. The demonstration plant will generate 680kg of green hydrogen daily, marking a significant step in Australia’s renewable energy exports and the global transition to clean energy solutions.
Project Specifications
The 1.5MW facility, commissioned by Japan’s New Energy and Industrial Technology Development Organization (NEDO), will operate for two years starting 2026. The project secured funding from the Japanese Ministry of Economy, Trade and Industry’s Green Innovation Fund, demonstrating strong governmental support for sustainable energy initiatives.
Technology Innovation: LOHC Implementation
ENEOS will implement methylcyclohexane (MCH) as a liquid organic hydrogen carrier (LOHC). This advanced technology enables:
- Hydrogen storage at room temperature
- Low-pressure transportation
- Use of existing petrochemical infrastructure
- Reduced transportation costs
- Enhanced safety in hydrogen handling
- Lower environmental impact during transport
The LOHC technology represents a significant breakthrough in hydrogen transportation, addressing key challenges in the hydrogen supply chain. By using toluene hydrogenation, the process creates a stable compound that can be safely transported using current infrastructure.
Project Timeline and Location
Construction begins in 2025 at a former bp refinery near the Port of Brisbane. MCH production is scheduled to commence by mid-2026, with partial exports planned to Japan. The strategic location near the Port of Brisbane provides optimal logistics for international shipping and demonstrates the potential for repurposing existing industrial sites for green energy production.
Economic Impact and Regional Benefits
Queensland Minister Ros Bates confirmed the project will create over 100 specialist positions in the growing green hydrogen sector. The investment strengthens Queensland’s position as a leader in renewable energy exports and supports the region’s economic diversification. These new jobs will span various sectors, including:
- Engineering and technical operations
- Project management
- Safety and compliance
- Logistics and supply chain
- Research and development
Industry Collaboration and Partnerships
The project involves strategic partnerships with:
- Japanese firms: Chiyoda Corporation, Sumitomo Electric Industries, TOPPAN, AGC
- Australian companies: GPA, GPRS
This international collaboration combines Japanese technological expertise with Australian resources and infrastructure capabilities, creating a model for future green energy projects.
Technology Background and Future Implications
While hydrogen carrier liquid binding was first explored in the 1970s, recent technological advances have made commercial implementation viable. ENEOS previously announced plans for the world’s first commercial-scale LOHC project using Honeywell technology.
Environmental and Market Impact
The project represents a significant step toward:
- Reducing carbon emissions in energy transport
- Establishing sustainable energy supply chains
- Creating a viable model for green hydrogen export
- Supporting Japan’s clean energy transition
- Developing Australia’s hydrogen economy
Looking Ahead
This demonstration project could pave the way for larger-scale green hydrogen production and export facilities, positioning Australia as a key player in the growing global hydrogen market. The success of this initiative may influence future investments in green hydrogen infrastructure and accelerate the adoption of hydrogen as a clean energy carrier.
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