Eneos Holdings will spend roughly ¥20 billion ($132 million) on a two-year demonstration project in Brisbane to test large-scale production of methylcyclohexane, a liquid hydrogen carrier that can be transported at ambient temperature, Nikkei reported.
The Japanese oil refiner expects demand from steelmakers and automakers seeking cleaner energy sources. MCH contains more than 500 times the hydrogen per unit volume compared with hydrogen gas and can utilize existing petroleum infrastructure, making it easier to handle than traditional hydrogen storage methods.
The project, starting in fiscal 2026, marks an expansion of Eneos’s earlier pilot plant while the company hedges its hydrogen ambitions. In May, the refiner indicated it would prioritize liquefied natural gas and sustainable aviation fuels over hydrogen in its three-year business plan, describing hydrogen as requiring “careful resource selection” based on market conditions.
Japan’s hydrogen strategy faces mounting challenges. The country trails Europe and China in green hydrogen development, with production costs remaining stubbornly high. While Tokyo aims to consume 12 million tons of hydrogen annually by 2040, questions persist about commercial viability and supply chain economics.
The Brisbane facility will be supported by Japan’s government-backed Green Innovation Fund, part of a ¥15 trillion public-private investment framework aimed at establishing hydrogen supply chains by mid-century.
