Japanese consortium eyes H2 supply chain in Hokkaido

A Japanese industry-government-led consortium will study building a hydrogen supply chain in Muroran in north Japan's Hokkaido, with the aim of supplying cheaper hydrogen.

The consortium led by local gas firm Muroran Gas and the Muroran city government, announced on 24 November that a study would be conducted on constructing a hydrogen plant with a storage and distribution system. The consortium also includes non-profit organisation Muroran Techno Centre, local university Muroran Institute of Technology, Kyushu TLO - an affiliate of Kyushu University, construction company Taisei, industrial gas supplier Air Water Hokkaido and electricity infrastructure firm Kitakoudensha.

Discussions are still ongoing to iron out details such as the start of commercial operations and hydrogen production capacity, a Muroran Gas representative told Argus. But power generation for hydrogen production will come entirely from the existing Shukutsu wind power station, that is wholly owned by Muroran city, the company added.

The consortium aims to supply cheaper hydrogen by reducing supply chain costs. This includes utilising the existing LPG distribution system in the city for hydrogen delivery and developing a new wind power generation system without batteries, said the representative. Oxygen derived from hydrogen production will be used for another future hydrogen project but further details are not known.

The project is initiated and funded by the environment ministry, likely in line with the country's goal to achieve decarbonisation by 2050.

Other Japanese firms have also started domestic hydrogen projects as part of the net zero goal. Refiner Eneos is leading another hydrogen project in Hokkaido, aiming to produce 10,000 t/yr of green hydrogen after beginning commercial operations in 2030. Upstream firm Inpex has started trials for blue hydrogen and ammonia production in northwest Japan's Niigata prefecture.

By Yusuke Maekawa