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Japan's Global Act for Hydrogen and Ammonia Value Chains

[Impact LIVE] Japan's Global Act for Hydrogen and Ammonia Value Chains

Date & Time: 15:00 - 17:30, GMT+9, May 30 Tuesday

Format: Digital Conference (Zoom Webinar)

Webinar Background:

Japan aims to supply 12 million tonnes of hydrogen annually by 2040. The government's Green Transformation (GX) Basic Policy proposes over USD 1.1 trillion of public-private financing, with around $60 billion dedicated to building clean hydrogen and ammonia value chains domestically and internationally. This includes investing in hydrogen production abroad, like in Australia and the Middle East, and transporting it to Japan for storage and utilization. Live on May 30, the webinar focused on Japan's hydrogen incentive plan and explored collaboration opportunities in the hydrogen industry value chain between Japan and other countries.

IMPACT Recording Timestamps:

00:02 - 00:22 | [Keynote] Decarbonizing Japan's Economy with Green Hydrogen: Prospects and Challenges

Ms. Hiroko Nakamura, Senior Researcher, The Institute of Energy Economics, Japan (IEEJ)

00:23 - 00:49 | [Keynote] JERA's Hydrogen and Ammonia Value Chain Endeavors: Key Insights and Lessons Learned

Mr. Sidhartha Basu, Strategy Officer, JERA

00:50 - 01:12 | [Keynote] Forging Bilateral Partnership: Exploring Renewable Hydrogen Export Route between Japan and Australia

Mr. Phil Richardson, General Manager, New Energy Projects, Growth and Future Energy, Stanwell

01:13 - 01:32 | [Keynote] Towards Cost Competitiveness: MENA - Japan Collaborate to Build Hydrogen and Ammonia Value Chain

Mr. Matteo Gillerio, Head of International Business Development, Duferco Energia SpA

01:33 - 02:02 | [Keynote] Decarbonizing Maersk, ASAP

Mr. Karim Fahssis, Head of Decarbonization, A.P. Moller - Maersk

02:03 - 02:30 | [Keynote] Japan’s Hydrogen Subsidies to Drive Industry Expansion and Foster Clean Energy Innovation

Ms. Hitomi Komachi, Partner, Allen & Overy 

02:31 - 02:42 | [Keynote] Sizing up Hydrogen and Ammonia Transportation Opportunities

Mr. Tomoaki Ichida, Managing Executive Officer, Mitsui O.S.K Lines

Our Top 6 Key Takeaways:

1. Japan's Strategy for Green Hydrogen - Trading Partnerships, Cost Analysis, and ASEAN Suppliers

Japan aims to achieve carbon neutrality by 2050 using hydrogen as a decarbonizing agent. The IEEJ presentation reveals the country's approach relying on blue and green hydrogen pathways. Japan prioritizes four international hydrogen trading partnerships, including Australia, Saudi Arabia, Chile, and the United States. Three hydrogen carriers, i.e., LH2, MCH, and NH3 are crucial for hydrogen transport. Studies indicate that green hydrogen sourced from Chile, with ammonia as the hydrogen carrier, offers the lowest cost, and blue hydrogen remains the most cost-effective option overall. The process efficiency is crucial to minimize conversion/reconversion steps. Additionally, Japan is exploring potential partnerships for green hydrogen with ASEAN regions, particularly Myanmar and Thailand.

2. JERA's Contribution to Decarbonization: Supporting Ammonia Combustion Power Generation Demonstration Projects

To implement the Japanese government's Green Growth Strategy, which aims for hydrogen and ammonia to account for approximately 10% of total electricity generation by 2050, it is necessary to promote emissions-free thermal power generation and actively utilize energy sources like hydrogen and ammonia. In terms of supply chain development, ammonia production is already mature and cost-competitive. Therefore, ammonia and hydrogen have broad prospects as clean energy sources in multiple sectors. While establishing a clean fuel supply chain poses challenges, valuable insights can be gained from the experience of natural gas supply chains to facilitate expansion.

3. Establishing a Cost-Effective Supply Chain: CQH2's Efforts in Connecting Central Queensland with Asia to Deliver Renewable Hydrogen and Support Partner Countries like Japan

Green hydrogen offers revenue diversification opportunities. Queensland can realize local manufacturing by fully leveraging the different components of the hydrogen supply chain and infrastructure. When establishing a feasible, large-scale renewable hydrogen supply chain linking Central Queensland with Asia, five crucial factors should be taken into account: strategic location, robust partnerships, efficient hydrogen procurement, reliable supply of renewable energy, and a strong relationship with local communities and government stakeholders.

4. Significant Cooperation Potential between the MENA and Japan. Success Hinges on Efficient Resource Utilization, Optimized Logistics, and Tailored Applications.

  • Autonomous solar power can play a crucial role in the success of projects, particularly when there are constraints on land and wind resources.

  • To import green molecules, countries like Japan and Italy should aim for a short logistics chain for fast and easy transportation. Ammonia, with its high energy density and ease of transport, is the preferred option over converting it to hydrogen for transportation.

  • Industrial projects involving hydrogen and ammonia are part of the entire industrial chain and should consider tailoring on the off-takers.

5. Japan's Subsidy Scheme and GX Bill's Contribution to Narrowing the Cost Gap and Advancing Green Hydrogen Economy.

To calculate the cost of green hydrogen, one can consider only capital expenses, excluding operational costs and interest, which reveals a disparity compared to gas-fired power generation. Japan's subsidy scheme aims to address this gap by supporting the supply chain and clusters, expanding the hydrogen and ammonia market. The program applies to both green and blue hydrogen, accommodating various suppliers through differential contracts that bridge price differences between bids and reference prices, ensuring compensation between suppliers and the government. Subsidy amounts and supplier compensation vary based on supplier type and hydrogen production.

6. Decarbonizing the Shipping Industry: Embracing Carbon-Neutral Alternatives such as Methanol to Replace Conventional Fuels.

The construction of ammonia or hydrogen fuel supply vessels creates opportunities for shipping industry expansion, following the strategies used in LNG and renewable energy sectors. Upstream focuses on wind power, CCS projects, and CO2 transportation, while midstream involves ammonia transport and storage units. Downstream, projects like ammonia-powered ships are feasible. Although methanol remains a priority for the shipping industry, challenges include production, fleet scaling, technology, and policy support. Limited global capacity necessitates investment and cooperation to meet ship demand. Improving the efficiency and sustainability of green methanol production is crucial.

Insights Brought to You by:

Hiroko Nakamura

Senior Researcher

The Institute of Energy Economics, Japan

Phil Richardson

General Manager, New Energy



Karim Fahssis

Head of Decarbonization


A.P. Moller - Maersk

Tomoaki Ichida

Managing Executive Officer

Mitsui O.S.K Lines


Sidhartha Basu

Strategy Officer



Matteo Gillerio

Head of International Business Development


Duferco Energia SpA

Hitomi Komachi


Allen & Overy 


Kayla Shi

Content Analyst

Leader Associates

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