Malaysian national oil company, Petroliam Nasional Berhad (PETRONAS) through its subsidiary PETRONAS Gas and New Energy Sdn Bhd (PGNESB) has signed a Memorandum of Understanding (MOU) with ENEOS Corporation (ENEOS) to jointly develop and explore its hydrogen business opportunities – clean hydrogen supply chain between Malaysia and Japan.
According to the MOU, both parties is set to embark on conducting technical-commercial joint study of a hydrogen supply chain including hydrogen production and its transportation in methylcyclohexane (MCH) form.
PETRONAS will join forces with ENEOS to further expands its territory on producing low carbon hydrogen from PETRONAS’s petrochemical facilities in line with the company’s sustainability agenda to achieve zero carbon emission by 2050.
“We are proud to expand our three-decade long energy partnership with ENEOS to include hydrogen, on top of what we have established in the liquefied natural gas (LNG) space. More importantly, this partnership is a testament of how industry collaboration can help accelerate our shared aspiration towards a low carbon future,”.Adnan Zainal Abidin, PETRONAS Gas + New Energy Executive Vice President and Chief Executive Officer
The development of liquid organic hydrogen carrier (LOHC) technology such as MCH is fast gaining traction due to its chemically stable nature that allows for long-term storage and long-distance transport. Additionally, the use of LOHC leverages on existing conventional oil and petrochemicals infrastructure which heavily reduces the need to develop new assets, thus making it a viable option for established energy players to implement. The development of a hydrogen-based economy is set to further intensify Malaysia’s future growth as the country prepares to propel forward into clean energy economy.
PETRONAS has been producing low carbon hydrogen from its facilities and will soon explore the commercial production of green hydrogen. This project will be funded from the Japanese Government’s Green Innovation Fund which supports ambitious green project and sponsors decarbonization project and initiatives.