Japan's ENEOS, Sumitomo, Malaysian SEDC Energy mull green hydrogen supply network

Tokyo — Japan's ENEOS and Sumitomo and Malaysia's SEDC Energy signed a memorandum of understanding Oct. 23 on developing green hydrogen supply networks in Sarawak in east Malaysia, with a view to exporting.

Under the MOU, ENEOS, Sumitomo and SEDC Energy will start a feasibility study in January 2021, looking at the establishment of a supply chain of green hydrogen produced using power from hydroelectric power plants in Sarawak, ENEOS officials said.

SEDC Energy is a wholly owned subsidiary of Sarawak Economic Development Company (SEDC), which manages energy businesses, including downstream petroleum and gas businesses.

The study will look at the production of several tens of thousands of metric tons a year of green hydrogen and converting it into methylcyclohexane, which is a liquid at ambient temperature and pressure, meaning existing facilities can be used for storage and transportation using chemical tankers.

The three companies are looking at Bintulu as a planned site for the potential project because it has a large petrochemical complex, with existing facilities and infrastructure, including tanks, loading equipment, port and berths, can be utilized for MCH exports.

Specific timelines for the study and subsequent launch of a pilot project remain unclear.

Rich in hydropower

Sarawak has been selected because of its rich hydropower resources. The state has a total hydropower capacity of 3.5 GW, with plans for an additional 1.3 GW by 2025.

Surplus power from stable hydroelectric power output can be used to electrolyze water and enabling low-cost production of green hydrogen, according to the ENEOS officials.

Based on results of this collaboration, ENEOS, Japan's largest refiner, will assess the feasibility of using the transported dehydrogenated CO2-free hydrogen for desulfurization at its refineries in Japan, the officials said.

It will also assess the feasibility of co-burning the transported dehydrogenated CO2-free hydrogen at its refineries' nearby gas-fired power plants in Japan, as well as supplying Malaysia and Singapore.

ENEOS is also part of the CO2-free Hydrogen Energy Supply-chain Technology Research Association, or HySTRA, which is running a pilot project over fiscal 2020-21 (April-March) to demonstrate lignite gasification and hydrogen refining at Latrobe Valley in Australia; hydrogen liquefaction and storage of liquefied hydrogen at Hastings; marine transportation of liquefied hydrogen from Australia to Japan and unloading of liquefied hydrogen in Japan.

Other HySTRA members are Iwatani, Shell Japan, Electric Power Development Co., or J-POWER, Marubeni, Kawasaki Heavy Industries and Kawasaki Kisen Kaisha, or "K" LINE.