Petronas, Eneos to develop clean hydrogen supply chain

 by NUR HAZIQAH A MALEK

Petroliam Nasional Bhd via its subsidiary Petronas Gas and New Energy Sdn Bhd (PGNESB) has signed a memorandum of understanding (MoU) with Eneos Corp (Eneos) to develop a competitive, clean hydrogen supply chain between Malaysia and Japan jointly, and to explore other hydrogen opportunities.

Petronas Gas and New Energy executive VP and CEO Adnan Zainal Abidin said the group is proud to expand its three-decade long energy partnership with Eneos to include hydrogen.

“This is on top of what we have established in the liquefied natural gas (LNG) space.

“More importantly, this partnership is a testament of how industry collaboration can help accelerate our shared aspiration towards a low carbon future,” he said in a statement.

He added that with emerging clean energy sources like hydrogen, innovation and collaboration with partners in technological development are key, as they contribute towards achieving cost competitiveness and scalability for wider use across businesses and industries.

The MoU will see the two parties go on a technical-commercial joint-study of a hydrogen supply chain which includes hydrogen production and its transportation in methylcyclohexane (MCH) form, converting hydrogen into a liquid from from its original gaseous form to be delivered in large volume.

The development of liquid organic hydrogen carrier (LOHC) technology such as MCH is gaining traction due to its chemically stable nature, allowing for long-term storage and long-distance transportation.

The use of LOHC technology also leverages on the current conventional oil and petrochemicals infrastructure, thus reducing the need for new assets development.

The two groups will also explore low carbon hydrogen production from Petronas’ petrochemical facilities and in the future, green hydrogen produced by renewable energy, both of which have applied for funding from the Japanese Government’s Green Innovation Fund.

The fund sponsors decarbonisation projects and initiatives, while the development of a hydrogen-based economy is set to complement future growth in Malaysia.

The signing is rooted in both companies’ common goals to achieve net zero carbon emissions by 2050, where Petronas is working towards sustainability and Eneos towards carbon neutral ambition via its Environmental Vision 2040.

Currently, the Malaysia-based gas company is already producing low carbon hydrogen from its facilities and will be exploring the commercial production of green hydrogen.