THE QUEENSLAND Government has announced that Japan’s largest oil company ENEOS will use its own technology in Queensland to significantly increase its production of green hydrogen.

The state government confirmed that from 2026, ENEOS will produce up to 680 kilograms of green hydrogen per day by building and running a $200 million demonstration plant at Bulwer Island in Brisbane.

Leading the current trade mission to Japan and the Republic of Korea, the Minister for Finance, Trade, Employment and Training, Ros Bates said the announcement highlighted Queensland’s continued status as an energy superpower.

“ENEOS continues to invest in Queensland because we’re a trusted partner,” Minister Bates said.

“ENEOS’s increase in local green hydrogen production will create over 100 new specialist jobs for Queensland in a key growth industry.”

The government confirmed the green hydrogen will be in the form of methylcyclohexane (MCH), a hydrogen carrier in liquid form that can be transported at room temperature and normal pressure, making it easy to store and transport. A portion will be shipped to Japan.

The MCH production plant will be constructed on approximately 6000 square metres of land at on the former BP refinery site, close to the Port of Brisbane.

Construction is scheduled to begin on the plant next year, with MCH production expected by the middle of 2026.

The state government said the project will run for two years and is expected to create over 100 new jobs in Brisbane between the start of construction and the end of the demonstration period.

ENEOS is working on the project in partnership with Japanese companies such as Chiyoda Corporation, Sumitomo Electric Industries, TOPPAN, and AGC, as well as Brisbane companies such as GPA and GRPS.

The demonstration project was commissioned by the New Energy and Industrial Technology Development Organization, and supported by the Green Innovation Fund (GI) established by the Japanese Ministry of Economy, Trade and Industry.

The GI Fund is an approximately $28 Billion fund aimed at helping Japan achieve carbon neutrality by 2050.