Hengyuan Refining Company Berhad, a Malaysian oil-refining company, is allocating $66.4m in capital expenditure (CAPEX) to develop and construct a hydrogen (H2) manufacturing unit (HMU) under the Hydrogen Generation (H2GEN) project.

The primary objective of the H2GEN project is to supply the refinery with 30 tonnes/day of H2 for hydro-treating processes to reduce the sulphur content in the company’s petrol and diesel products.

The project is expected to start up in September 2020, primarily to enable full compliance with the new Malaysian clean diesel specifications.

Wang YouDe, Chairman of Hengyuan Refining Company Berhad, commented, “Hengyuan refinery currently relies solely on our platformer unit for the manufacturing of H2. The installation of the HMU is crucial to expand our H2-production capacity and also provides a second source of H2, thus improving our resilience and reliability as a key supplier of products to the Malaysian market.”

YouDe continued, “The H2GEN project is part of our ongoing CAPEX programme to enhance our production processes to fulfil domestic demand while upgrading to the new product quality specifications.”

“From a broader perspective, we believe that improving the reliability of our refinery and ensuring the sustainability of our refinery’s operations for the long-term will enable Hengyuan to further enhance and sustain profitability in the future,” YouDe concluded.