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Eneos and Neoen to work on hydrogen supply chain

Japanese oil and gas firm Eneos is working with French renewable energy producer Neoen to establish the feasibility of a green hydrogen supply chain between Australia and Japan.

The companies have signed a memorandum of understanding to work together on producing the fuel in Australia and transporting it to meet demand in Japan.

Neoen will study the feasibility of a stable renewable  generation supply for electrolysis and the most efficient electrolysis technologies.

2GW – Renewable capacity operated by Neoen in South Australia

Eneos will aim to produce methylcyclohexane more efficiently and cheaply in an effort to use it as a carrier for transporting hydrogen to, and storing it in, Japan.

Hydrogen is inefficient and expensive to ship in its pure form because it needs to be cooled to very low temperatures.

Neoen already has more than 2GW of renewable energy generation in operation or under construction in Australia. In South Australia, the company is developing two projects—the Goyder Renewables Zone and Crystal Brook Energy Park—which combine wind, solar and battery storage to provide a stable source of renewable energy.

Green hydrogen production is more efficient when powered by a stable electricity supply, but renewable generation can be intermittent even in the most consistent locations.

The government of South Australia is promoting the development of hydrogen and ammonia production, and is also planning to expand port facilities to enable exports of the fuels.

The two companies have received government support from the Green Innovation Fund in Japan and the South Australian state government.

The route from Australia to Japan is often considered one of the best options for hydrogen shipping because of Australia’s high renewable potential and Japanese demand for imported fuel.


Author: Tom Young