Large-scale Hydrogen Supply Chain Establishment

Large-scale Hydrogen Supply Chain Establishment

Project Overview

Hydrogen can not only directly contribute to the decarbonization of the power generation sector by converting surplus power into hydrogen for storage and utilization, it can also maximize its potential as a zero-emission renewable energy power source. Hydrogen is therefore expected to be used as a secondary energy source for achieving carbon neutrality and contribute to decarbonization in industrial fields such as raw material utilization and heat demand where decarbonization through electrification is difficult.

To promote the social implementation of hydrogen, supply costs must be reduced by increasing the size of supply facilities while also creating large-scale hydrogen demand. However, since long-term hydrogen demand is currently uncertain, it is difficult for private companies to make large-scale investments in infrastructure. To reduce this uncertainty, a social implementation model must be established that can increase supply and create hydrogen demand by maximizing use of existing infrastructure.

In addition to enlarging the transportation facilities, and other resources including hydrogen carriers, the project will implement demonstrations of hydrogen power generation at an actual power plant (co-combustion with other fuels and single-fuel combustion using hydrogen only). The aim is to establish technologies that will make reducing supply costs possible along with creating a large-scale demand for hydrogen, and to achieve a hydrogen supply cost of 30 yen/Nm³ by 2030, and 20 yen/Nm³ or below by 2050 (similar level to fossil fuels).

Project Features

Large-scale hydrogen supply chain demonstration, and development of innovative hydrogen transportation technology

In order to make hydrogen supply costs competitive with fossil fuels (20 yen/Nm³ or below), projects for achieving commercialization of a large-scale hydrogen supply chain are being carried out using liquefied hydrogen and methylcyclohexane (MCH) as a hydrogen carrier. Development of innovative liquefaction and direct MCH electrolytic synthesis technologies is also underway to reduce hydrogen supply costs.

Developing a foundation for material evaluations to support R&D on liquefied hydrogen-related equipment

To help reduce the cost of equipment used in the production, transportation, storage, and utilization of liquefied hydrogen, equipment is being developed that will form the basis for uniformly evaluating the mechanical properties of materials.

Demonstration of hydrogen power generation technology at an actual power plant

To commercialize hydrogen gas turbine power generation technology that will create large-scale demand by 2030, combustors developed through past projects are being used at actual power plants for carrying out various demonstrations to verify combustion stability and address other issues.

Project Summary


Up to 300 billion yen

CO2 Reduction Effect (World)

In 2030
Approximately 7 million tons/year
In 2050
Approximately 400 million tons/year

Economic Effect (World)

In 2030
Approximately 0.3 trillion yen
In 2050
Approximately 5.5 trillion yen

Research and Development Targets

Hydrogen supply costs

In 2030
30 yen/Nm3
In 2050
20 yen/Nm3

Assumptions regarding estimates of CO2 reduction effect and economic effect

  • 1 million tons of hydrogen will be supplied by the international hydrogen supply chain in 2030, and 55 million tons of hydrogen will be traded worldwide in 2050.
  • Hydrogen provided through international hydrogen supply chains is expected to be used for hydrogen power generation.
  • Hydrogen is expected to replace imported natural gas, which emits less CO2 than other fossil fuels such as oil and coal, with equivalent heat values.
  • Economic impacts have been calculated on the basis of average hydrogen supply costs: 30 yen/Nm³ in 2030 and 100 yen/kg in 2050.

Research and Development Targets

(Reference) Breakdown of liquefied hydrogen supply costs

Project Implementing Entities

[Research and Development 1]
Establishment of international hydrogen supply chain technology and development of evaluation infrastructure for liquefied hydrogen-related equipment

  • Development and demonstration of larger and more efficient technology for transporting hydrogen, etc.
  • Development of infrastructure for evaluation of liquefied hydrogen-related materials
  • Development of innovative liquefaction, hydrogenation, and dehydrogenation technology
Liquefied Hydrogen Supply Chain Commercialization Demonstration​
  • ManagerJapan Suiso Energy, Ltd.
  • ENEOS Corporation
  • Iwatani Corporation
Large-scale demonstration of an MCH supply chain
  • ENEOS Corporation
Developing a foundation for material evaluations to support R&D on liquefied hydrogen-related equipment
  • National Institute for Materials Science
Development of large-scale high-efficiency machineries for hydrogen liquefiers
  • Kawasaki Heavy Industries, Ltd.
Direct MCH electrosynthesis technology development
  • ENEOS Corporation

[Research and Development 2]
Establishment of technology to achieve hydrogen power generation technology (co-combustion and single-fuel combustion)

  • Demonstration of hydrogen power generation technology at an actual power plant (co-combustion and single -fuel combustion)
Technical validation of Hydrogen Co-firing Thermal Power Generation for establishing a large-scale hydrogen supply chain
  • JERA Co., Inc.
Demonstration of Hydrogen Co-/Exclusive Firing Power Generation
Hydrogen single fueled power generation equipment demonstration
  • ENEOS Corporation