Global engineering firm JGC Holdings Corporation (JGC) has been awarded a FEED contract for a green hydrogen and MCH (methylcyclohexane) plant in Malaysia by ENEOS Corporation (ENEOS) and Sumitomo Corporation (Sumitomo).
Expected to commence commercial operation by 2030, the green hydrogen plant will produce approximately 90,000 tonnes of carbon dioxide (CO2)-free hydrogen per year for conversion to MCH, a liquid organic hydrogen carrier.
When hydrogen is needed for applications such as chemical synthesis or fuel cell manufacture, it can be stored inside MCH as a way to transport and store the gas safely and efficiently.
Having signed an MOU in 2020, the partners launched a feasibility study in January 2021. A joint development agreement was then signed by ENOS, Sumitomo and SEDC Energy (SEDCE) at the end of 2023 to create a CO2-free hydrogen supply chain by converting clean hydrogen from hydroelectric power plants to MCH.
The MCH will be used to transport the hydrogen via ship to sites across Japan.
“Sumitomo is leading the evaluation of the project feasibility and financing arrangements,” said JGC in a statement. “ENEOS is in charge of the technical part of MCH production and maritime transportation to Japan while SEDC Energy is responsible for securing electricity and the technical part of hydrogen production.”
Japan’s national Hydrogen Basic Strategy intends to generate public and private sector investment in hydrogen worth 15 trillion yen over the next 15 years, and increase the use of hydrogen six fold by 2040.
At a press conference, Minister of Economy, Trade and Industry Nishimura Yasutoshi, said, “We would like to steadily build a supply chain for hydrogen in Asia and the Indo-Pacific region by further expanding Japan’s [hydrogen] technology, which has been world-leading.”
Within the Strategy, the Japanese Government outlines a target for 20 million tonnes per annum volume (use) by 2050. No numeric target has been given for import volume, but a ‘large volume’ is assumed.
Indonesia’s Sarawak project is set to begin large-scale commercial production of green hydrogen by 2027 as the Malaysian state targets the reduction of its carbon footprint.
