Petronas partners ENEOS for first commercial scale hydrogen-to-MCH project

KUALA LUMPUR, March 11 -- Petronas Hydrogen Sdn Bhd and ENEOS Corporation (ENEOS) have signed a Joint Feasibility Study Agreement (JFSA) to advance the studies for a commercial hydrogen production and conversion project in Kerteh, Terengganu. 

Petroliam Nasional Bhd (Petronas) said under the JFSA, both parties will pursue detailed technical and commercial feasibility studies for the production of low carbon hydrogen from Petronas’ existing facilities, production of green hydrogen from a new hydro-powered electrolyser facility, and hydrogen conversion into methylcyclohexane (MCH). 

"The agreement is part of the long-term Memorandum of Understanding (MoU) signed last August for the development of a clean hydrogen supply chain between Malaysia and Japan," it said in a statement today. 

According to the statement, the facilities are projected to have a total hydrogen production and conversion capacity of up to 50,000 tonnes per annum by 2027 for export in MCH form to Japan, where the clean hydrogen will be distributed to Japanese industries through ENEOS’ refineries. 

“Once onstream, the project could potentially be the first commercial-scale hydrogen-to-MCH undertaking in the world. The final investment decision is expected by the end of 2023," said Petronas. 

Through ENEOS, the hydrogen-to-MCH project has been selected as one of the Green Innovation Fund projects by the Japanese government -- a testament to the project's viability and competitiveness, which is a critical aspect in the development of the nascent clean hydrogen supply chain. 

The two trillion Japanese yen funding was introduced to support green research and development projects as well as facility developments to propel Japan’s ambitious decarbonisation plans, which include achieving the three million tonnes per annum clean hydrogen demand target by 2030. 

Petronas and ENEOS are also exploring other hydrogen projects and technology opportunities, both domestically and internationally. 

“This collaboration is intended to develop a competitive hydrogen supply chain which is a crucial element for both parties’ decarbonisation agenda,” it said. 

Petronas said since 2020, it has entered into several strategic partnerships with international and domestic players to grow its hydrogen production capabilities and delivery networks, covering low-carbon and green hydrogen. 

It had also announced the setting up of a new, independent entity that would focus on cleaner energy solutions and capture opportunities in the energy transition sphere alongside its core portfolio. 

Petronas said the entity will provide customers with lower carbon solutions through three initial core offerings – renewables, hydrogen and green mobility. 


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