Japan’s ENEOS and Neoen to explore SA hydrogen exports, OZ Minerals backs innovators

It’s an industry tipped to be worth billions, with SA in focus for a big role. Hydrogen-powered drones are in the mix too.

The hydrogen industry in South Australia is gaining momentum with a Japanese company formally starting to evaluate exports and a leading mining company backing seven innovative ideas.

Japanese company ENEOS will investigate exporting green hydrogen from South Australia in a deal with Neoen, the company building huge solar and wind projects in the Mid North. Australia has “excellent potential for cost-competitive hydrogen production” from renewables, ENEOS said.

And SA was at the forefront of renewables backed by batteries, creating a stable, reliable energy supply.

“SA is one of the most developed regions in the world in terms of battery infrastructure”, it said.

Neoen Australia managing director Louis de Sambucy said the company “has been extensively investigating the potential for large-scale production of hydrogen in SA”.

The partnership with ENEOS would explore “a unique opportunity for export of SA’s world-class renewable energy resource in the near term”.

Neoen Australia managing director Louis de Sambucy.

Addressing a Committee for Economic Development of Australia forum on Monday, Energy and Mining Minister Dan van Holst Pellekaan said the hydrogen industry “is not a dream, it’s actually coming, it’s real”.

“The drive is coming from countries which are not blessed our enormous land mass, sun and wind,” he said.

Large industrialised countries which lack space for renewable energy projects looked to hydrogen to reduce their carbon dioxide output and address climate change.

The CEDA forum heard that SA-based copper miner OZ Minerals recognised hydrogen would have an important role in mining in the future.

Large industrialised countries which lack space for renewable energy projects looked to hydrogen to reduce their carbon dioxide output and address climate change. Picture: Roy VanDerVegt

OZ ran a competitive project inviting innovators from around the world to submit ideas worth developing.

From 158 entries, OZ has selected seven projects from Australia, the UK, Canada and South Africa which it will support.

“We will come together over the next three to six months to undertake experiments, studies and collaborations,” OZ general manager Katie Hulmes said.

Ideas to explore include hydrogen-powered drones and storage.

The CEDA forum was told consumer demand for sustainable energy was a major factor in the Australian Gas Infrastructure Group developing HydrogenPark SA at Tonsley, which is blending the gas into the distribution network in Mitchell Park.

The world needed both decarbonised electricity and renewable gas, AGIG head of strategy Kristin Raman said.

“A lot of customers choose gas, connections to the gas network continue to grow,” she said.

“And some industries need the flame.”

The federal government’s hydrogen strategy predicts the export market will be worth billions of dollars but transport and storage are key challenges.

ENEOS said it already has ocean-going tankers and storage tanks and gas infrastructure in Japan.

This would help “development of a new energy supply system while curbing new investment,” it said.

Hydrogen manufactured by electrolysis in SA would be transformed into a liquid, methylcyclohexane, for export with the process reversed in Japan.

A pilot project between Victoria and Japan is the most advanced for exporting from Australia , but it would use hydrogen produced from brown coal. The first ship is due to arrive for loading from Japan sometime between October and March.

Originally published as Japan’s ENEOS and Neoen to explore SA hydrogen exports, OZ Minerals backs innovators