Japan to establish world’s first liquefied hydrogen supply chain

Australia’s most advanced clean hydrogen project, the Hydrogen Energy Supply Chain (HESC) project in Victoria, has entered the commercial demonstration phase with the commitment of JPY220 billion approximately AUD$2.35 billion, in funding from the Japanese Government’s Green Innovation Fund.

The funds will be delivered via Japan Suiso Energy (JSE) comprising Kawasaki Heavy Industries and Iwatani Corporation. A newly formed J-POWER and Sumitomo Corporation Joint Venture (JPSC JV) will supply 30,000 tonnes of clean hydrogen gas per year, to a JSE-owned and operated liquefaction and shipping facility at the industrial Port of Hastings.

This major injection of capital enables JSE to design and build commercial-scale facilities to liquefy and ship the hydrogen from Port of Hastings to the Port of Kawasaki in Japan, bringing significant economic benefits to Victoria and Hastings in particular.

The JPSC JV will extract the hydrogen from Latrobe Valley coal with CO2 capture and storage facilities in the nearby Bass Strait.

Dr. Eiichi Harada said, “After a decade of working together with the Japanese, Australian and Victorian Governments, our efforts to establish a world-first clean hydrogen energy supply chain have been rewarded. This is truly a watershed moment for our combined efforts to decarbonise global energy production. This commitment of AUD$2.35 billion gives all participants in the hydrogen supply chain the confidence to progress to the next stage of commercialisation.”

“This is a complex project and there is still some way to go in terms of approvals, design, construction and commissioning but this is a major boost for the Victorian economy on its journey towards a clean energy future”, said Dr. Harada. “The project will bring new clean energy infrastructure and jobs to the Hastings and Latrobe Valley communities. Something, we think is very important as we support the people through this period of change, as well as the broader energy sector.”

Jeremy Stone said; “We are moving from start-up to scale-up phase, which is an exciting time for J-POWER and our joint venture partner, Sumitomo Corporation. Bringing commercial-scale hydrogen production to the Latrobe Valley will act as a catalyst for growth in the broader Gippsland region, as complementary industries such as Ammonia, Fertiliser and Methanol are attracted to the opportunities it presents.

Engr. Haseeb Ullah

Haseeb covers the global energy market for both conventional and modern energy resources. His expertise is on the global energy supply chain from generation to distribution and end-users. He has a Master degree in Engineering Management and a Bachelor of Science degree in Electrical Engineering.
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