Last September, Japan Suiso Energy Ltd (JSE) and three Japanese shipping companies, Kawasaki Kisen Kaisha Ltd (K Line), Mitsui OSK Lines Ltd (MOL), and Nippon Yusen Kabushiki Kaisha (NYK), have agreed to join JSE Ocean Ltd (JSE Ocean), a subsidiary of JSE.
JSE and the three Japanese shipping companies, which have had extensive knowledge and experience in the energy transport business, will establish the marine transport of liquefied hydrogen (LH2) at commercial scale through JSE Ocean. The company will collaborate to explore the safety and efficient operation of the world’s first large-scale LH2 carrier by 2024 and develop a viable marine transportation business scheme. Furthermore, the LH2 carrier will be powered by hydrogen, significantly reducing CO2 emissions during operation.
JSE was established in June 2021 with the main objectives of research, planning, management, and investment in the international supply chain of LH2. The current shareholder composition is Kawasaki Heavy Industries Ltd at 66.6% and Iwatani Corp at 33.4%.
JSE Ocean was established in January 2023 to research the marine transportation of LH2 by using a large-scale LH2 carrier.
The supply venture will have JSE being the majority shareholder with 50.2% of the stock, while the shipping companies hold 16.6% each.
Japan’s basic hydrogen strategy
Expectations for hydrogen as a clean energy source have been increasing worldwide as industries aim for decarbonization. Japan’s Basic Hydrogen Strategy, revised by the Japanese government in June 2023, identifies hydrogen as the alternative to fossil fuels. In the strategy, Japan commits to a target supply of 3 million tons per year of hydrogen by 2030, 12 million tons per year by 2040, and 20 million tons per year by 2050.
The target hydrogen supply cost is approximately 30 yen/Nm3 (normal cubic meter of air) in 2030 and 20 yen/Nm3 in 2050 at the point of arrival in Japan. To achieve these price and volume targets and create a secure global supply chain, transport by ship is crucial.
In August 2021, Japan’s New Energy and Industrial Technology Development Organization (NEDO) allocated a grant from the Japanese government’s Green Innovation Fund to JSE, Iwatani Corp, and Eneos Corp for the “Liquefied Hydrogen Supply Chain Commercialization Demonstration Project.”
In this project, JSE will establish the world’s first large-scale hydrogen liquefaction and transportation technology, involving an initial 30,000 tons of hydrogen per year before upscaling. JSE will also demonstrate a comprehensive and reliable global LH2 supply chain, covering hydrogen production, liquefaction, export from Australia, marine transportation, and import. (Story and photos courtesy of JSE and K Line)