Japanese energy firm Iwatani is launching a study into developing a large-scale blue hydrogen production and supply chain project using untapped brown coal resources on Hokkaido island.
Iwatani is considering producing hydrogen in Hokkaido using brown coal, or lignite, and delivering liquid hydrogen chilled at -253°C on trucks or coastal vessels, depending on the location and distance to potential consumers. Carbon dioxide (CO2) generated in the production process is planned to be captured and stored underground, although an ideal location for the storage has not been identified.
The company is targeting to start up the proposed coal-to-hydrogen project by 2030, as part of efforts to secure a large volume of low-cost hydrogen domestically as part of the country's 2050 decarbonisation goal.
Lignite resources are located across Hokkaido island, with the northern Hokkaido area having rich lignite reserves.
Iwatani's project, if materialised, could become Japan's first blue hydrogen production project. The company considers green hydrogen production currently unfeasible in Japan because of limited availability and the high cost of renewable power.
Blue hydrogen is produced from fossil fuels, with the generated CO2 captured and stored. Green hydrogen is usually produced by electrolysis that produces only hydrogen and non-polluting oxygen.
The Japanese government in December last year unveiled a decarbonisation roadmap that put the country's potential hydrogen demand at a maximum 3mn t/yr for 2030, including 420,000 t/yr of blue and green hydrogen. Tokyo is also considering the possibility of bringing forward development of domestic methane hydrate resources, eyeing potential domestic production of blue hydrogen.
Iwatani is one of the Japanese companies that have been working with domestic and overseas firms to tap potential demand growth for hydrogen. The company is participating in Japanese venture Hystra, which is jointly demonstrating a coal-to-hydrogen production and export project in Australia. It is also studying the feasibility of separate green hydrogen projects in Australia for export to Japan.
Liquefied hydrogen supplier Iwatani has six plants that can liquefy 120mn m³/yr of hydrogen and 11 hydrogen compression plants, accounting for a 70pc market share in Japan.
