Kawasaki Heavy Suspends Plan to Use Hydrogen From Aussie Coal

TOKYO, Dec 11 (Reuters) – Kawasaki Heavy Industries has revised its Japan-Australia hydrogen supply chain demonstration project, suspending plans to use hydrogen derived from Australian brown coal and shrinking the size of the ships to be used.

The move was prompted by difficulties in procuring hydrogen from Australia by the fiscal year 2030 deadline due to delays in construction approvals, a company spokesperson said.

The company, which leads the project, has decided to use hydrogen produced in Japan instead, but has not yet decided the details, the spokesperson said.

It has also not ruled out procuring coal-derived hydrogen from Australia in the future, the spokesperson added. Other potential sources include the Middle East.

Kawasaki also now plans to use smaller liquefied hydrogen carriers with a capacity of 40,000 cubic metres, down from original plans for vessels that can carry 160,000 cubic metres, the spokesperson said.

The company believes the smaller vessels will be better suited to market needs in the early stages of hydrogen supply chains.

The world’s first liquefied hydrogen carrier, with a capacity of 1,250 cubic metre, made its first voyage carrying hydrogen produced from brown coal in Australia to Japan in 2022.

BACKED BY GOVERNMENTS

The coal-to-hydrogen project is backed by the governments of Japan and Australia as a way to switch to cleaner energy and cut carbon dioxide (CO2) emissions.

The Japanese government awarded 220 billion yen ($1.45 billion) in funding to it last year.

Hydrogen, seen as a path to decarbonising industries that rely on coal, gas and oil, is key to Japan’s plans for achieving carbon neutral by 2050. Australia aims to become a major exporter of the fuel.

($1 = 151.5100 yen)

(Reporting by Yuka Obayashi; editing by Jason Neely)

(c) Copyright Thomson Reuters 2024. 

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