US industrial technology firm Honeywell has begun basic engineering work to help build the world’s first commercial-scale hydrogen supply chain using a liquid organic hydrogen carrier (LOHC) technology.
The project, led by Japanese energy major Eneos, will use Honeywell UOP’s system to transport hydrogen in a stable liquid form. While Eneos previously announced its intention to adopt Honeywell’s technology in 2024, this marks the start of the engineering phase to bring the system into operation.
The compound to be created is methylcyclohexane (MCH), which is said to offer a safer, more efficient alternative to moving compressed or liquefied hydrogen.
The technology works by converting hydrogen gas into MCH through Honeywell’s toluene hydrogenation process. It can then be transported via ship or tanker before being dehydrogenated once at its destination. The remaining byproduct, toluene, can be returned and recycled for future use.
Eneos is planning to install the MCH unit at its refineries in Japan, enabling the country to export hydrogen sourced from overseas renewables while using its existing infrastructure.
Liquid MCH is a good hydrogen carrier because it contains 500 times more hydrogen per volume than hydrogen gas, so much more can be transported in one trip while reducing the cost of distribution.
According to Rajesh Gattupalli, President of Honeywell UOP, the increasing global demand for energy means regions are looking to scale-up cost-effective hydrogen imports.
“Nations possessing abundant renewable energy resources or established hydrogen infrastructure are … well-suited to become key suppliers,” he said.
He said the MCH technology would boost the commercial potential of hydrogen to meet growing energy needs.
Japan is one of the world’s most active hydrogen markets, with a national strategy focused on using green hydrogen to decarbonise transport, power, and heavy industry. The government has committed over $100bn in public–private investments to scale up hydrogen production, import infrastructure, and end-use applications by 2050.
So far Japan has pursued hydrogen partnerships with Australia, the Middle East and the US. However, the global supply chain for green hydrogen is still in its infancy. According to the International Energy Agency, while Australia and the US have over 300 renewable hydrogen projects between them, only a small fraction are operational.
For example, Australia’s normalised capacity represents just 0.004% of its projected output as of October 2024.
If successful, the project could lay the groundwork for hydrogen trading routes between renewables-rich regions and global demand centres. It also highlights the geopolitical and logistical risks of Japan’s import-heavy strategy. To mitigate these, Japan will need to further diversify its hydrogen sources.
