Out-Law News

Japan-Australia green hydrogen supply chain possibilities to be studied

Japan’s largest oil company ENEOS will carry out a study on building up a commercial scale green hydrogen supply chain between Japan and Queensland, Australia, the Queensland government has announced.

This study will explore the use of one of the latest hydrogen transport and storage technologies, methylcyclohexane (MCH), and examine what existing infrastructure and transport options can be used and what gaps along the supply chain need to be filled.

ENEOS already has its own oil tankers, storage tanks and refineries used for export, as well as its own import terminals in Japan. The company expects to use these facilities as the hydrogen supply chain develops, according to the Queensland government.

In a statement, ENEOS said it had already signed an agreement to conduct the study with Australia’s Origin Energy. The two companies will seek opportunities for government support including from Japan’s Green Innovation Fund and Australia’s hydrogen hub project.

The 2 trillion yen (US$18 billion) Green Innovation Fund was set up by Japan’s Ministry of Economy, Trade and Industry (METI) in 2020 to support projects promoting decarbonisation.

Karah Howard of Pinsent Masons, the law firm behind Out-Law, said: “Japan’s ENEOS’ commitment to green hydrogen in Australia is an exciting development in the green energy market, fortifying Australia’s position as a low cost green hydrogen supplier, and clear evidence of Japan and Australia’s commitment to climate change strategies.”

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