<article><p class="lead">Japanese gas distributor Toho Gas plans to start delivering hydrogen produced from natural gas at a plant with an output capacity of 1.7 t/d in Chita, central Japan's Aichi prefecture, by 2024.</p><p>This is the first step for Toho Gas to supply hydrogen to nearby areas, where demand from industrial users is predicted to rise. The company will start with the 1.7 t/d plant and expand the capacity to 5 t/d or more, depending on the demand in the area. The company is also exploring the possibility of using the plant as a hydrogen import terminal in the future.</p><p>The produced hydrogen is expected to have its carbon dioxide emissions offset with carbon credits and carbon capture, utilisation and storage (CCUS) technology. But hydrogen without any offsets can be delivered to users that require cheaper hydrogen, Toho Gas said. </p><p>The project aims to boost hydrogen demand with affordable prices by producing it from natural gas, as demand is a key part of establishing hydrogen supply chains, the firm added. The company will also provide demand-side proposals, such as hydrogen co-firing technology, to their customers to encourage consumption by creating more opportunities for hydrogen usage.</p><p>Japan is discussing supporting the establishment of hydrogen supply chains in areas that have potentially large hydrogen demand, in the country's upcoming clean energy strategy that is scheduled to be formulated by June. Reducing cost is expected to prompt industry sectors to invest in the market and expand hydrogen demand, according to the country's trade and industry ministry Meti.</p><p>Separately, Japan's steel producer Kobe Steel (Kobelco) plans to start a demonstration of its hybrid-type hydrogen gas supply system at the company's Takasago works from March 2023 in Hyogo prefecture, to support industry users with a stable and reasonably-priced hydrogen supply.</p><p>The system is designed to have a liquid hydrogen vaporiser and a water-electrolysis hydrogen generator utilising renewable energy in parallel, which will allow users to utilise hydrogen sourced from liquefied and renewable energy, such as solar power. The electricity produced from renewable energy will also be used at industry facilities. This can minimise cost and eliminate renewable energy instability for users, Kobelco said.</p><p>The project aims to encourage decarbonisation for small- and medium-sized businesses, especially until green hydrogen can be supplied at affordable prices and in sufficient volumes, Kobelco added.</p><p class="bylines">By Maiko Nakashima</p></article>
