ENEOS Holdings plans to raise ¥461 billion ($3 billion) through the listing of its subsidiary, JX Advanced Metals Corporation (JXAM), to free up capital for energy transition projects, including hydrogen and synthetic fuels.
The largest oil refiner in Japan will sell more than 460 million shares in JXAM, with an option to over-allot an additional 69.8 million shares, reducing its total ownership from 100% to 42.4%.
The initial public offering (IPO) reportedly represents Japan’s largest in seven years on the Tokyo Stock Exchange.
ENEOS aims to increase investment in its energy transition strategies, with a focus on producing cost-competitive hydrogen overseas before transporting it into Japan. They have been exploring methods including liquid hydrogen, organic hydrides and ammonia for large-scale hydrogen storage and transport.
In an online statement, ENEOS outlined that the sale of JXAM will ensure the “investments required for execution of its business strategies and transformation of its business portfolio to realise the energy transition,” whilst also implementing shareholder returns “quickly and reliably.”
The statement added, “ENEOS Holdings believes that its corporate value will be further increased by accelerating its efforts to transform itself into a company that realises a carbon-neutral society through the stable supply of energy and materials via petroleum-related businesses and the supply of next-generation energy such as synthetic fuels and hydrogen.”
The listing will also allow JXAM, a leading manufacturer of semiconductor materials, to operate more independently, enabling faster decision-making and increased R&D investment in semiconductor and ICT materials.
Last December, ENEOS revealed plans to build an AUD $200m ($129.9m) small-scale project in Australia which will export green hydrogen to Japan.
Read more:ENEOS plans AUD $200m LOHC hydrogen export project in Queensland
H2 View understands that the 1.5MW plant on Bulwer Island in Queensland will produce up to 680kg of green hydrogen per day from 2026.
Additionally, ENEOS announced ambitions to develop the “world’s first” commercial scale liquid organic hydrogen carrier (LOHC) project to offer a “more efficient and effective” way to ship and store hydrogen using existing infrastructure.
Read more:Honeywell and ENEOS to deliver commercial scale LOHC project
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