Eneos Corp., Japan's biggest oil refiner, on Feb. 1 opened a small green hydrogen plant in Australia which will demonstrate its patented electrolysis technology, the Queensland state government said.

Backed by the Japanese government's 2 trillion yen ($15 billion) Green Innovation Fund, Eneos will be able to make 20 km/d of green hydrogen, using its Direct MCH technology powered by a solar system on site, the state said.

"This project is set to unlock significant benefits for Queensland's economy by generating hydrogen jobs of the future and tapping into new export markets," the state's deputy premier, Steven Miles, said in a statement.

Eneos says on its website that its technology is low-cost and efficient as it stores hydrogen as a liquid in the form of methylcyclohexane (MCH) made from water, toluene and renewable energy in a single step, without having to produce hydrogen as a gas first.

By storing green hydrogen as MCH rather than as liquid hydrogen, the product can be handled using existing petroleum infrastructure, rather than having to chill the hydrogen to minus 253 C (487 F) to be able to transport it.

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