Kawasaki Heavy suspends plan to use hydrogen from Aussie coal

Kawasaki Heavy Industries

11/12/2024 10:49

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      Change follows delays in construction approvals
    

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      Will also now use smaller ships than originally planned
    

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      Project backed by Japan, Australia governments
    

  
       TOKYO, Dec 11 (Reuters) - Kawasaki Heavy Industries
 7012.T  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)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))