JAPANESE oil company Eneos is to increase its production and export of green hydrogen from Queensland.

From next year the company said it would produce up to 20 kilograms of green hydrogen every day at its Bulwer Island site in Brisbane.

Queensland treasurer and minister for trade and investment Cameron Dick said the announcement was another major step towards Queensland becoming a renewable hydrogen superpower.

“Companies like Eneos want to invest in Queensland because we’ve got the settings for industry right,” Mr Dick said.

“These sorts of commitments also raise our profile as an attractive destination for substantial foreign investment.”

The company is to produce the green hydrogen using its own electrolysis technology, powered from renewable energy generated by a dedicated onsite 250-kilowatt solar system.

The hydrogen will be produced in the form of methylcyclohexane, allowing it to be stored and transported as a liquid before being refined back to hydrogen in Japan.

This is the first project supported by the Japanese government’s $24 billion Green Innovation Fund, which will help the country achieve carbon neutrality by 2050.

State minister for energy, renewables and hydrogen Mick de Brenni said Queensland is well-placed to lead the world in hydrogen development.

“With proactive policy from government, abundant renewable resources, and well-established infrastructure, our state is the ideal place to invest in hydrogen,” Mr de Brenni said.

“Hydrogen presents a wide range of opportunities across sectors, and by encouraging the development of new technologies and processes locally we’ll maximise the potential of hydrogen.”

Eneos, in partnership with Japanese engineering company Chiyoda Corporation and the Queensland University of Technology, began its Queensland-based green hydrogen technology demonstrations in 2018.

The company has also started construction on a 204-megawatt solar project at Edenvale in the Western Downs.

Queensland trade and investment commissioner for Japan Tak Adachi said this latest investment from Eneos highlights the strong trading relationship between state and nation.

“The longstanding partnership of Queensland and Japan continues to be fruitful,” Mr Adachi said.

“When it comes to developing technologies for sustainable and carbon-neutral industries, Japanese companies are world-leading, and we’re pleased to be part of that progress in Queensland.”

Trade and Investment Queensland is the Queensland Government’s dedicated global business agency assisting exporters and promoting Queensland as the place to invest.