Japan: Inpex makes FID on clean hydrogen CCUS project

For the first demonstration project in Japan that will produce clean hydrogen and ammonia in conjunction with carbon capture, use, and storage, Inpex has made a final investment decision (CCUS).

An existing pipeline will be utilized to transfer natural gas from Inpex’s Minami-Nagaoka field to Hirai’s depleted Higashi-Kashiwazaki field, where it will be used to create hydrogen and ammonia at a new plant that will be constructed nearby. According to Inpex, about 700 tons of blue hydrogen will be produced annually.

The production of blue ammonia will require a portion of this hydrogen, and the leftover hydrogen will be used to generate electricity. As part of a CCUS effort, the carbon dioxide (CO2) produced during the generation of hydrogen and ammonia will be injected into an underground gas reservoir.

“This will be the first demonstration project in Japan integrating the production and use of blue hydrogen and ammonia, as well as one of the few in the world to have taken the first step toward building a production facility; at the moment, the majority of blue hydrogen and ammonia production projects are still in the conceptual or planning phases. As it will generate clean energy from domestic gas, the project is also significant for Japan’s energy security, according to Inpex.

Along with being a partner, the government-owned Japan Oil, Gas and Metals National Corp (JOGMEC), which was recently given the name Japan Organisation for Metals and Energy Security, would contribute equity funding to support the production and storage of hydrogen and ammonia.

Two of the five net zero businesses listed in the company’s INPEX Vision 2022, which was released on February 9, 2022, are the hydrogen and CCUS industries, according to Inpex, which stated that it intends to develop these businesses. By roughly 2030, the business hopes to commercialize three or more projects and create and supply at least 100,000 tons of hydrogen/ammonia annually with a target CO2 injection volume of 2.5 million tons or more.