Kawasaki Heavy Industries (KHI) will build a grey hydrogen production facility to supply a liquid H2 terminal backed by Japan’s ¥2trn ($12.5bn) Green Innovation Fund.
The new steam methane reforming facility will be capable of producing 6,570 tonnes of grey hydrogen annually from natural gas without carbon capture.
This H2 will then be transported via pipeline to the Kawasaki LH₂ Terminal, with both sites located in Japan’s Kanagawa prefecture just south of Tokyo.
It is not clear whether this new facility will be the sole provider of H2 to the Kawasaki LH₂ Terminal, led by KHI on behalf of Japan Suiso Energy (JSE), a consortium of Japanese businesses hoping to establish an international trade in liquid hydrogen.
This also raises questions as to whether the Kawasaki LH2 Terminal can really be considered a ‘green’ project for the sake of government funding, if it is using fossil-based hydrogen.
The Kawasaki LH₂ Terminal has a planned storage capacity of 50,000 cubic metres (3,438 tonnes) of liquid H2 and is already under construction, with operations expected to begin in 2030.
Meanwhile, the new associated grey hydrogen facility is expected to be operational by the spring of 2029.
Hydrogen Insight has reached out to KHI to clarify why grey hydrogen is being used over green or blue hydrogen.
“In constructing and operating this facility, our company will appropriately follow the necessary procedures based on relevant laws and regulations and Kawasaki City ordinances, thereby ensuring safety and security while harmonizing with the local community,” KHI said in a press release.
“We also aim to underpin the domestic supply base of the hydrogen supply chain and become a driver in accelerating the development of the hydrogen industry.”
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