Japanese consortium eyes H2 supply chain in Hokkaido

Spanish Market: Hydrogen
25/11/22

A Japanese industry-government-led consortium will study building a hydrogen supply chain in Muroran in north Japan's Hokkaido, with the aim of supplying cheaper hydrogen.

The consortium led by local gas firm Muroran Gas and the Muroran city government, announced on 24 November that a study would be conducted on constructing a hydrogen plant with a storage and distribution system. The consortium also includes non-profit organisation Muroran Techno Centre, local university Muroran Institute of Technology, Kyushu TLO — an affiliate of Kyushu University, construction company Taisei, industrial gas supplier Air Water Hokkaido and electricity infrastructure firm Kitakoudensha.

Discussions are still ongoing to iron out details such as the start of commercial operations and hydrogen production capacity, a Muroran Gas representative told Argus. But power generation for hydrogen production will come entirely from the existing Shukutsu wind power station, that is wholly owned by Muroran city, the company added.

The consortium aims to supply cheaper hydrogen by reducing supply chain costs. This includes utilising the existing LPG distribution system in the city for hydrogen delivery and developing a new wind power generation system without batteries, said the representative. Oxygen derived from hydrogen production will be used for another future hydrogen project but further details are not known.

The project is initiated and funded by the environment ministry, likely in line with the country's goal to achieve decarbonisation by 2050.

Other Japanese firms have also started domestic hydrogen projects as part of the net zero goal. Refiner Eneos is leading another hydrogen project in Hokkaido, aiming to produce 10,000 t/yr of green hydrogen after beginning commercial operations in 2030. Upstream firm Inpex has started trials for blue hydrogen and ammonia production in northwest Japan's Niigata prefecture.

By Yusuke Maekawa

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08/04/25

Australian hydrogen developer IGE enters administration

Sydney, 8 April (Argus) — Australian hydrogen developer Infinite Green Energy (IGE) has entered administration the day before an application for a winding up order was due to be heard before the Western Australian (WA) state Supreme Court, filings show. IGE had been fighting an application filed by plaintiff DD Investment WA, a privately-owned company, to appoint liquidators because of unpaid debts. The firm entered administration on 7 April, financial regulator Australian Securities and Investments Commission filings show. The company's Arrowsmith project in WA was supposed to produce 23 t/d of green hydrogen with stage 1 of its scheme, at a rural site about 290km north of state capital Perth. The project's focus was developing fuel for the transport sector, with a final fortnight-long public consultation period for its environmental impact assessment scheduled to close on 12 April, according to the WA government. IGE's plans included a 100MW alkaline electrolyser and 40 t/d liquefaction system with first output in late 2027-28. It would later scale up to 42 t/d in stage 2, the developer said, with South Korean engineering company Samsung C&T backing plans in 2023 for an eventual 100,000 t/yr of production . By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Atome signs EPC contract for Paraguay CAN project

07/04/25

Atome signs EPC contract for Paraguay CAN project

Singapore, 7 April (Argus) — London-listed energy firm Atome has signed a definitive engineering, procurement and construction (EPC) contract with Swiss contractor Casale for its renewable CAN project in Paraguay. Atome has signed a fixed-price $465mn EPC agreement with Casale for the 260,000 t/yr CAN plant at Villeta, Paraguay. The deal marks the latest step towards Atome taking a final investment decision for its project targeting towards the end of the first half of 2025, the firm said today. This follows Atome's agreement with French clean hydrogen infrastructure fund Hy24 earlier this year. The CAN at the plant will be made using ammonia produced from hydroelectricity, and output is scheduled to start in 2027. Atome is targeting first sales of "green" fertilizer in 2028. The project, when complete, would be the world's first large-scale carbon-free fertilizer facility. By Dana Hjeij Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK to sign remaining CfDs for first H2 round in May

02/04/25

UK to sign remaining CfDs for first H2 round in May

Birmingham, 2 April (Argus) — The UK hopes to sign long-awaited subsidy contracts with the remaining projects from its first hydrogen allocation round (HAR1) in May, minister of state for the department of energy security and net zero, Sarah Jones, said. The UK will also "very shortly" unveil a shortlist of projects selected for subsidies of a larger second round (HAR2), Jones said at the Hydrogen UK conference in Birmingham today. But the announcement will hardly satisfy UK developers who have been expecting the shortlist any day since late 2024 . The missing list was the top talking point among delegates at the event. The UK has signed 15-year contracts-for-difference (CfDs) with four of the 11 renewable hydrogen projects selected in HAR1 , according to the latest information from the Low Carbon Contracts Company (LCCC), the government-backed counterparty. Finalising the rest of the CfDs is long-overdue in the eyes of many developers because the UK first announced its winners in December 2023. The process was delayed by the general election last summer and concerns around the Climate Change Levy (CCL) charged on electricity supply, among other issues. The new government took a step towards assuaging concerns about the CCL last week which might allow more projects to sign contracts. But HAR1 developers have warned that signing a CfD does not guarantee they will build projects straight away, since there is hardly any penalty for signing the subsidy deal. Some still need to finalise deals for power supply, construction contracts and financing, meaning it could still take time for signatories to take their final investment decisions. The UK will also update its hydrogen strategy later this year, Jones said. "New evidence has emerged on cost, demand and expected operating patterns, and our understanding has evolved with time," including on "how we can expect the hydrogen economy to develop over time," Jones said. The statements could indicate that the Labour government might amend the 10GW clean hydrogen production target set by the previous administration for 2030, according to one industry participant. The Conservative government's 10GW goal from 2022 had included a sub-target for 6GW electrolytic production capacity. The government will also reconsider the role of hydrogen in making steel in the UK, Jones said. The idea of using hydrogen for steel appeared to have little future in the UK under the previous government as concepts from the UK's steel plants had made no tangible progress . By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Germany's EWE holds off on further renewable H2 plants

02/04/25

Germany's EWE holds off on further renewable H2 plants

Hamburg, 2 April (Argus) — German utility EWE will not build more renewable hydrogen plants for now because of "high risks" associated with potential investments, said the chief executive of its hydrogen business, Geert Tjaks. "We have a pipeline for 2GW projects, but we are building right now only 300MW," Tjaks told the Hydrogen and Fuel Cells Europe Public Forum at the Hanover Trade Fair on 1 April. "To be very clear, right now we are not planning to build any further projects." There are risks associated with the future market outlook and the technology, among other factors, Tjaks said. Strict EU rules, such as the additionality requirement for renewable hydrogen from 2028 , and long-winded permitting procedures are adding more layers of risk for project developers, he said. Tjaks, like several other delegates at the Hanover event, called for more flexibility around the EU's definition of renewable fuels of non-biological origin, which are effectively renewable hydrogen and derivatives. Several member states, including Germany , have lobbied for changes to additionality and other rules in recent months. EWE last year took final investment decisions for just over 300MW of electrolysis capacity as part of its Clean Hydrogen Coastline plans. The bulk of this, 280MW, will be installed at Emden in northwest Germany . The decision was enabled by generous public funding, with the German federal government and the state governments of Lower Saxony and Bremen providing a combined €500mn ($540mn) to the overall investment costs of around €800mn. The state support was approved under the EU's Important Project of Common European Interest (IPCEI) framework in February 2024 , a lot later than EWE and other developers had hoped. The IPCEI projects were intended to serve as "proof-of-concept," Tjaks said. But since the process was delayed "for three years or something, of course the proof-of-concept will be delayed". As a result, "further projects will be delayed as well because proof-of-concept is a way to derisk" as it helps to "understand" the market and the technology, he said. EWE could move quickly if it decides to go ahead with more projects, according to Tjaks. "We can actually scale up very shortly to 2GW," he said. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US H2 projects stall, incentives fall short: Technip

28/03/25

US H2 projects stall, incentives fall short: Technip

London, 28 March (Argus) — Many US hydrogen project developers have paused or cancelled plans after finding costs were too high and government incentives were insufficient, even before President Donald Trump's return to the White House added uncertainty, Paris-listed contractor Technip Energies has said. Developers rushed to hire contractors for project studies in 2022-23 in a wave of optimism after the US announced tax credits for hydrogen production , but many projects were shelved or suspended between the end of 2023 and mid-2024. This came as companies realised the true cost of many items not limited to CO2 capture, hydrogen storage, and hydrogen liquefaction, Technip Energies' director Randy Kessler said. Multiple developers hired Technip for feasibility studies and engineering designs so it witnessed the drop-off in project plans first hand, Kessler said. Renewable hydrogen projects faced the most challenges, but gas-based projects with carbon capture and storage (CCS) "did not fare too well either", Kessler said. "Nearly all" renewable hydrogen projects were suspended when true capital and operating costs became known, especially compared with conventional 'grey' hydrogen, Kessler said. "Economics generally prevail in the long run, and at 5-8 times the cost of grey H2 production, most big players and project developers found out the incentives did not cover the gap," he said. Most of Technip Energies' clients pursuing CCS-enabled projects eventually asked for estimates for conventional grey hydrogen plants, with "pre-investment" to add CO2 capture units in the future, Kessler said. Washington made matters worse for developers with "confusing" incentives and delays in finalising eligibility rules for the tax credits, which it only settled on in early 2025 , just weeks before the change in administration. "The people who made money were the consultants who told people what it all meant," Kessler said. The late-2024 US election became both an "issue" and an "an excuse" for developers to explain the lack of progress, Kessler said. Many US firms complained that political uncertainty during the election period hampered their business decisions. Politically powerful energy companies lobbying Washington for "appropriate levels of incentives to cover the gap" or relaxing tax credit rules to lower project costs would be the most likely way to revive the sector, Kessler said. The US could consider setting mandates, but this is unlikely unless there is "more global buy-in", he said. Few regions, aside from the EU, have proposed mandates, and even there they have not been firmly implemented. But US firms and industrial groups are focusing lobbying efforts on protecting the hydrogen tax credits rather than quibbling over the rules, US sources said. The return of Trump to the White House made the future of the tax credits less certain because of his preference for boosting US fossil fuel output over investing in clean energy. Another contracting firm, Black & Veatch, recently said it was unsurprised to see many speculative projects fall by the wayside, and that the best route forward is better quality and modestly-sized projects with clear offtakers. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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