ENEOS, Japan’s largest oil company, is set to significantly expand its green hydrogen production capabilities in Queensland, Australia.

The company announced plans to construct a $200 million demonstration plant on Bulwer Island, near Brisbane, which will produce up to 680 kilograms of green hydrogen daily starting in 2026.

Queensland’s Minister for Finance, Trade, Employment and Training, Ros Bates, who is currently leading a trade mission to Japan and South Korea, hailed the announcement as a testament to Queensland’s status as an energy superpower.

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

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

The green hydrogen will be produced in the form of methylcyclohexane (MCH), a liquid hydrogen carrier that can be easily stored and transported at room temperature and normal pressure.

A portion of the produced MCH will be shipped to Japan, furthering the country’s clean energy goals.

The production facility will be built on approximately 6,000 square metres of land at the former BP refinery site, strategically located near the Port of Brisbane.

Construction is scheduled to begin next year, with MCH production expected to commence by mid-2026.

This two-year demonstration project is a collaborative effort involving several Japanese companies, including Chiyoda Corporation, Sumitomo Electric Industries, TOPPAN, and AGC, as well as Brisbane-based firms GPA and GRPS.

It has been commissioned by the New Energy and Industrial Technology Development Organisation (NEDO) and is supported by the Green Innovation (GI) Fund, a $28 billion initiative established by the Japanese Ministry of Economy, Trade and Industry to help Japan achieve carbon neutrality by 2050.

The ENEOS project represents a significant step forward in Queensland’s renewable energy ambitions and strengthens Australia’s position as a potential hydrogen production powerhouse.

It also aligns with Queensland’s broader energy goals, including the $62 billion Queensland Energy and Jobs Plan, which aims to achieve 70 per cent renewable energy by 2032 and 80 per cent by 2035.