Right: Konishi, Head of C1 Division
After working in global trading and resource-based projects at a major trading company, Konishi joined HighChem in 2021 and assumed the role of Head of the C1 Division.

Left: Wu, Manager of Hydrogen Energy Section, C1 Division
Wu studied aerospace engineering at Beihang University in Beijing. After graduating, he moved to Japan in 2012 to work for a leading chemical manufacturer, where he worked in engineering for six years. He joined HighChem in 2018 and became the manager of the newly established Hydrogen Energy Section in 2022.

Konishi, Head of C1 Division: "HighChem is already a representative company in hydrogen handling in Japan."

──Can you tell us about HighChem's efforts in the hydrogen business?

Konishi　At HighChem, we have developed technologies to produce chemicals from syngas using C1 chemical technology. One of our core achievements is applying and scaling up a previously developed technology in Japan, which involves producing chemicals from syngas derived from coal. We commercialized and scaled up this technology in China. We established the SEG® technology to produce ethylene glycol, a key raw material for PET, from coal, and we have implemented a total of approximately 25 licenses in China, amounting to a scale of around 10 million tons per year. In Japan, the total production of ethylene glycol by all manufacturers does not even reach 1 million tons annually, so the scale of HighChem's licenses is roughly 10 times that, which illustrates the magnitude of our operations.

​To produce this 10 million tons of ethylene glycol, approximately 1.3 million tons of hydrogen is required annually.  Japan's target for hydrogen usage in 2030 is 3 million tons annually, so the scale of our hydrogen usage is significant. Even just considering this, it is clear that HighChem is already a leading company in hydrogen handling in Japan.

Wu, Section Manager: "In China, large quantities of inexpensive hydrogen are already being produced."

──How is hydrogen adoption progressing in China?

Wu　In Japan, the high cost of hydrogen production is often seen as a major hurdle for realizing a hydrogen society. However, in China, large quantities of inexpensive hydrogen are already being produced.

China, rich in coal resources, is promoting the high-value utilization of coal, not just for CO2-emitting power generation, but also for chemical production. When producing chemicals from coal, HighChem often applies its expertise in C1 chemical technology, and two key raw materials required are carbon and hydrogen.

As Konishi mentioned, hydrogen is essential for producing ethylene glycol using SEG® technology. Additionally, hydrogen is generated as a byproduct in the PDH (propane dehydrogenation) process, which is used to produce the common chemical propylene. There are 10 to 20 PDH plants in China, and a significant amount of hydrogen is produced as a byproduct, some of which is not yet fully utilized.

Furthermore, in China’s inland regions, the adoption of renewable energy, such as solar power, is rapidly advancing, leading to the accelerated production and development of low-cost green hydrogen.

Konishi　"Currently, there are over 400 hydrogen stations in China, making it the world leader in hydrogen utilization. Additionally, according to plans released by provincial governments, China aims to increase the number of fuel cell vehicles (FCVs) by over 100,000 by 2030."

The world has witnessed China's rapid adoption of green technologies such as electric vehicles (EVs) and solar power. It is highly likely that hydrogen will follow a similar path of fast development in China.

However, one challenge for hydrogen in China is the geographical distance between production and consumption areas. ​ ​Hydrogen production is concentrated in the inland regions, where coal and renewable energy resources are abundant, while consumption is largely focused in the coastal regions.

── Is there potential for Japan's advanced hydrogen technologies to be utilized in China?

Konishi　I believe it is very likely. For example, the issue of the distance between production and consumption areas, which I mentioned earlier, has made Japan's hydrogen storage and transportation technologies a focal point of attention.

Wu　Since 2019, HighChem has been collaborating with a major Japanese energy company to conduct studies on hydrogen energy supply using the MCH method in China, and we have also conducted a feasibility study. The MCH method involves using organic hydride (Methyl Cyclohexane: MCH) as a hydrogen carrier to store and transport hydrogen. Among several hydrogen transportation technologies, the MCH method is particularly promising because it allows hydrogen to be stored as a liquid at room temperature, making it compatible with existing infrastructure such as gasoline and tank trucks. This makes it an advanced method that is expected to play a key role in the hydrogen society.

Konishi　The main challenge in realizing Japan's hydrogen society is cost. First, renewable energy in Japan is expensive, and the hydrogen produced from it is even more costly. On the other hand, China's inland regions have abundant and inexpensive renewable energy, and they are already producing low-cost by-product hydrogen. Furthermore, hydrogen stations are being established at an astonishing pace.

China provides the ideal stage to validate and enhance the new technologies developed in Japan. From the perspective of refining technologies that are still not fully commercialized, China, where affordable hydrogen is already available and where the number of hydrogen users is relatively high, is the ideal place to test and refine Japan's advanced hydrogen technologies.

"Feasibility study"

Scene from the signing ceremony of the distribution agreement with Carbon Energy

—What efforts will be made to promote the adoption of green hydrogen?

Wu　In 2023, HighChem signed a distribution agreement with Carbon Energy (Beijing) Co., Ltd. (hereafter referred to as Carbon Energy), a manufacturer and seller of key components for alkaline water electrolysis equipment in China.

Alkaline water electrolysis equipment is used to produce hydrogen from renewable energy and is a groundbreaking method for the production of green hydrogen, with research and development ongoing worldwide.

Carbon Energy provides a third-generation composite membrane for alkaline water electrolysis equipment, which is one of the key components. Only two companies in the world manufacture this type of membrane. Compared to conventional products, it boasts superior airtightness and low resistance, making it possible to easily produce high-purity hydrogen with less power. This revolutionary product has impressed many, including Japanese customers, who were surprised by its high performance.

By collaborating with a technology-driven company like Carbon Energy, HighChem believes it can create exciting projects that contribute to realizing a carbon-neutral society. Recently, we have been deepening our exchanges with each other, frequently traveling between China and Japan.

Konishi: "Hydrogen is essential for producing chemicals from CO2."

—HighChem's expansion into the hydrogen business seems to play a significant role in the development of technologies for producing chemicals from CO2.

Konishi　Exactly. Hydrogen is essential for producing Chemicals from CO2. To lead the future of replacing petroleum-derived chemicals with CO2-derived ones, HighChem must contribute to building a society where affordable hydrogen is commonly available worldwide. I believe it's important for HighChem to thoughtfully consider what it can do to make this a reality.