A group of Japanese companies, led by Kawasaki Heavy Industries (KHI) and Iwatani Corp, have signed an agreement to create Japan’s first hydrogen supply chain with Australia. The project aims to advance energy transition toward a cleaner society by using hydrogen as a low-carbon fuel.
The project, called Hydrogen Energy Supply Chain (HESC), will involve producing clean hydrogen gas from coal in Victoria state using carbon capture and storage (CCS) technology. The hydrogen gas will then be liquefied, loaded onto ships and transported to Kawasaki city near Tokyo. KHI and Iwatani Corp will oversee the liquefaction and transportation process.
The project will receive JPY220 billion (US$1.5 billion) from the Japanese government’s Green Innovation Fund. The initial production capacity will be 30,000 to 40,000 tonnes per year of clean hydrogen gas, with a potential expansion to 225,000 tonnes per year. The project is expected to commence production in the late 2020’s, subject to commercial agreements and environmental permits and approvals.
