Japan Suiso Energy, Ltd. (JSE), along with three leading Japanese shipping giants, namely Kawasaki Kisen Kaisha, Ltd. (“K” LINE), Mitsui O.S.K. Lines, Ltd. (MOL), and Nippon Yusen Kabushiki Kaisha (NYK), have forged a strategic alliance through the creation of JSE Ocean, Ltd. (JSE Ocean). Under this collaboration, JSE Ocean will spearhead the establishment of a pioneering global liquefied hydrogen supply chain.
JSE will remain the majority shareholder in this venture, retaining a 50.2% stake, while the three esteemed shipping companies will each hold a 16.6% share, demonstrating a shared commitment to advancing the hydrogen economy.
The global demand for hydrogen as a clean energy source has been steadily growing as nations worldwide intensify their efforts to achieve carbon neutrality. Japan, in particular, has embraced hydrogen as a cornerstone of its clean energy strategy. The recently revised Basic Hydrogen Strategy, put forth by the Japanese government in June 2023, positions hydrogen as a key alternative to fossil fuels in the nation’s decarbonization journey. Japan has set ambitious targets, aiming to produce 3 million tons/year of hydrogen by 2030, escalating to 12 million tons/year by 2040, and a remarkable 20 million tons/year by 2050. Crucially, the strategy aims to reduce the hydrogen supply cost to approximately JPY30 /Nm3 in 2030 and JPY20 /Nm3 in 2050 upon arrival in Japan. Achieving these targets hinges on the development of a secure global supply chain, with maritime transport playing a pivotal role.
This initiative builds upon the foundation laid by Japan’s New Energy and Industrial Technology Development Organisation (NEDO) in August 2021. NEDO allocated a grant from the Japanese government’s Green Innovation Fund to JSE, Iwatani Corporation, and ENEOS Corporation for the “Liquefied Hydrogen Supply Chain Commercialization Demonstration Project.” In this endeavor, JSE will pioneer large-scale hydrogen liquefaction and transportation technology, initially handling 30,000 tons of hydrogen annually before scaling up. The project encompasses the entire liquefied hydrogen (LH2) supply chain, spanning hydrogen production, liquefaction, export from Australia, maritime transportation, and import into Japan.
JSE Ocean, founded in January 2023, is dedicated to researching the marine transportation of LH2 using large-scale LH2 carriers. With the combined expertise of JSE and the three Japanese shipping giants, who possess extensive knowledge in energy transport, the focus is on establishing commercial-scale LH2 maritime transport by 2024. This collaborative effort aims to ensure the safety and efficiency of the world’s first large-scale LH2 carrier, while simultaneously devising a sustainable marine transportation business model. Notably, the LH2 carrier will be powered by hydrogen, contributing significantly to reduced CO2 emissions during its operations.
The partnership between JSE and these renowned shipping companies marks a pivotal moment in the global energy transition, promising to facilitate the widespread adoption of hydrogen as a clean and sustainable energy source. As the world strives for a greener future, this collaboration serves as a beacon of hope for achieving cleaner, more sustainable energy solutions.
