Eneos, Fortescue to study Japan-Australia hydrogen supply chain

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The logo of Fortescue Metals Group adorns their headquarters in Perth, Australia, November 11, 2015. REUTERS/David Gray

TOKYO, Sept 16 (Reuters) - Japanese refiner Eneos Holdings (5020.T) and a unit of Australia's Fortescue Metals Group (FMG.AX) will examine collaborating on development of a green hydrogen supply chain between the two countries, it said on Thursday.

Green hydrogen is a zero-carbon fuel made by using renewable power to split water into hydrogen and oxygen and is seen as a way to decarbonise emissions-intensive long-haul transport and heavy industry.

Eneos and Fortescue Future Industries (FFI) will examine the potential for the stable supply of affordable hydrogen produced from renewable energy in Western Australia where vast areas of land are available to build large-scale solar and wind power farms.

FFI will focus on renewable energy supply and water electrolysis cells for hydrogen production while Eneos will be

responsible for production of methylcyclohexane (MCH), a form of hydrogen storage and transport, and maritime transport of MCH from Australia to Japan, the Japanese company said in a statement.

On Wednesday, Japan's biggest hydrogen supplier Iwatani Corp and five other firms said they would study the feasibility of building a green liquefied hydrogen supply chain between Japan and Australia that could produce 100 tonnes a day by around 2026. read more

Japanese engineering firm Chiyoda Corp (6366.T) succeeded in a pilot project last year to ship hydrogen in MCH from Brunei to Japan as fuel for power generation.

Liquid MCH can be shipped at ambient temperature and pressure to power plants and other facilities, where hydrogen is extracted for energy use.

Reporting by Yuka Obayashi; editing by Jason Neely

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