KUALA LUMPUR (Sept 23): Petroliam Nasional Bhd's (Petronas) subsidiaries, such as Petronas Chemicals Group Bhd and Petronas Gas Bhd, are well positioned to begin investing in natural gas-to-hydrogen production, which could diversify their revenue stream, said AmInvestment Bank. It noted that recently Petronas signed a memorandum of understanding (MoU) with Tokyo-based ENEOS Corp to explore the production of low-carbon hydrogen by Petronas' petrochemical facilities and green hydrogen from renewable energy sources. The MoU also covers a technical-commercial joint study to develop a competitive clean hydrogen supply chain between Malaysia and Japan. The study, which will be eligible for funding from the Japanese government's Green Innovation Fund, includes hydrogen production, transportation in methylcyclohexane form and conversion from its original gaseous state into a liquid form to enable large volume deliveries. The investment bank said while blue and grey hydrogen costs the lowest at US$1.50-US$2.50 per kilogramme currently, green hydrogen will become more competitive over the coming decades.

Source: The Edge Markets September 23, 2021 04:41 UTC