Japanese consortium eyes H2 supply chain in Hokkaido

: Hydrogen
22/11/25

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

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/04/14

IMO GHG pricing not yet Paris deal-aligned: EU

Brussels, 14 April (Argus) — The International Maritime Organisation's (IMO) global greenhouse gas (GHG) pricing mechanism "does not yet ensure the sector's full contribution to achieving the Paris Agreement goals", the European Commission has said. "Does it have everything for everybody? For sure, it doesn't," said Anna-Kaisa Itkonen, the commission's climate and energy spokesperson said. "This is often the case as an outcome from international negotiations, that not everybody gets the most optimal outcome." The IMO agreement reached last week will need to be confirmed by the organisation in October, the EU noted, even if it is a "strong foundation" and "meaningful step" towards net zero GHG emissions in global shipping by 2050. The commission will have 18 months following the IMO mechanism's formal approval to review the directive governing the bloc's emissions trading system (ETS), which currently includes maritime emissions for intra-EU voyages and those entering or leaving the bloc. By EU law, the commission will also have to report on possible "articulation or alignment" of the bloc's FuelEU Maritime regulation with the IMO, including the need to "avoid duplicating regulation of GHG emissions from maritime transport" at EU and international levels. That report should be presented, "without delay", following formal adoption of an IMO global GHG fuel standard or global GHG intensity limit. Finland's head representative at the IMO delegation talks, Anita Irmeli, told Argus that the EU's consideration of whether the approved Marpol amendments are ambitious enough won't be until "well after October". Commenting on the IMO agreement, the European Biodiesel Board (EBB) pointed to the "neutral" approach to feedstocks, including first generation biofuels. "The EBB welcomes this agreement, where all feedstocks and pathways have a role to play," EBB secretary general Xavier Noyon said. Faig Abbasov, shipping director at non-governmental organisation Transport and Environment, called for better incentives for green hydrogen. "The IMO deal creates a momentum for alternative marine fuels. But unfortunately it is the forest-destroying first generation biofuels that will get the biggest push for the next decade," he said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

H2 groups, environmentalists disappointed by IMO deal

25/04/14

H2 groups, environmentalists disappointed by IMO deal

Hamburg, 14 April (Argus) — The International Maritime Organization's (IMO) global greenhouse gas (GHG) pricing mechanism may be insufficient to stimulate short-term uptake of clean hydrogen-based marine fuels and threatens decarbonisation targets, hydrogen industry associations and environmental groups said. Delegates approved a proposed mechanism at the IMO's 83rd Marine Environment Protection Committee (MEPC) meeting on 11 April. The proposal will be put to an adoption vote at the next MEPC in October after which the rules could enter into force in 2027. The IMO said its "net-zero framework is the first in the world to combine mandatory emissions limits and GHG pricing across an entire sector". But the agreement does not go far enough to drive extensive uptake of clean hydrogen and derivatives, such as ammonia and e-methanol, as the mechanism's design will encourage use of LNG and biofuels instead, at least in the short-term, according to industry participants and environmental bodies. "Delegates have agreed a measure that may lock in the use of environmentally destructive biofuels and LNG" instead of providing the incentives necessary "to jump start the transition" to e-fuels based on renewable hydrogen, said the Skies and Seas Hydrogen-fuels Accelerator Coalition's (Sasha) founder Aoife O'Leary. Brussels-based environmental group Transport & Environment (T&E) took a similar stance. While the IMO's agreement "creates a momentum for alternative marine fuels… it is the forest-destroying first generation biofuels that will get the biggest push for the next decade," the group's shipping director Faig Abbasov said. "Without better incentives for sustainable e-fuels from green hydrogen, it is impossible to decarbonise this heavy polluting industry." The criticism is directed primarily at the CO2 prices set under the two-tier system. The tier 2 price of $380/t of CO2 equivalent (CO2e) could encourage a shift away from diesel or other "high-emission fuels", but this would likely be to "relatively affordable biofuels" rather than "significantly cleaner alternatives such as green hydrogen-derived fuels", T&E said. Industry body the Green Hydrogen Organisation (GH2) noted that reducing the penalties to $100/t CO2e price for vessels that meet "base" targets could encourage companies using "LNG and more carbon intensive fuels" to "pay to pollute rather than comply over the next few years". The group criticised the lack of "a universal levy with a meaningful carbon price". It will be key to ensure that all emissions, including methane leakage, are comprehensively accounted for and that "direct and indirect land-use change from biofuels" is factored in, GH2 said. But despite the criticism, GH2 said the agreement "sends an important signal to green fuels producers to go forward with their projects". "The greenest fuels will be able to generate credits… which they can sell," the group said, adding that the IMO will agree "a mechanism to reward zero or near-zero emission ships by March 2027". This could drive an increase in orders for dual-fuel vessels that could eventually transition to hydrogen-based fuels, it said. Off target Some groups, including T&E, the Clean Shipping Coalition and the Global Maritime Forum, argue that the shipping industry will fail to meet emissions reduction targets with the proposed framework. The measures will "at best" provide emissions reductions of 10pc by 2030 and 60pc by 2040, far below the IMO's 2023 commitments to 30pc and 80pc, respectively, T&E said. The failure to send stronger signals for uptake of hydrogen-based fuels puts at risk a target of reaching 5pc fuel use that is zero- or near-zero emission by 2030 and the industry's entire 2050 net-zero goal, the Global Maritime Forum said. Other International shipping organisations, such as the International Chamber of Shipping and the European Community Shipowners Association, voiced support for the agreement although they acknowledged that it is "not perfect". By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: IMO GHG scheme in EU ETS could be 'challenging'

25/04/11

Q&A: IMO GHG scheme in EU ETS could be 'challenging'

London, 11 April (Argus) — Delegates have approved the global greenhouse gas (GHG) pricing mechanism proposal at the International Maritime Organization's (IMO) 83rd Marine Environment Protection Committee (MEPC) meeting. Argus Media spoke to ministerial adviser and Finland's head representative at the IMO delegation talks, Anita Irmeli, on the sidelines of the London MEPC meeting. What is your initial reaction to the text? We are happy and satisfied about the content of the agreed text, so far. But we need to be careful. This week, all member states were able to vote. But in October, when adaption will take place, only those states which are parties to Marpol Annex VI will be able to vote if indeed a vote is called for, and that changes the situation a little bit. Here when we were voting, a minority was enough — 40 votes. But if or when we vote in October, then we need two thirds of those party to Marpol Annex VI to be in favour of the text. Will enthusiasm for the decision today remain by October? I'm pretty sure it will. But you never know what will happen between now and and the next six months. What is the effect of the decision on FuelEU Maritime and the EU ETS? Both FuelEU Maritime and the EU ETS have a review clause. This review clause states that if we are ambitious enough at the IMO, then the EU can review or amend the regulation. So of course, it is very important that we first consider if the approved Marpol amendments are ambitious enough to meet EU standards. Only after that evaluation, which won't be until well after October, can we consider these possible changes. Do you think the EU will be able to adopt these the text as it stands today? My personal view is that we can perhaps incorporate this text under FuelEU Maritime, but it may be more challenging for the EU ETS, where shipping is now included. What was the impact of US President Donald Trump's letter on the proceedings? EU states were not impacted, but it's difficult to say what the impact was on other states. By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IMO approves two-tier GHG pricing mechanism

25/04/11

IMO approves two-tier GHG pricing mechanism

London, 11 April (Argus) — Delegates have approved the global greenhouse gas (GHG) pricing mechanism proposal at the International Maritime Organization's (IMO) 83rd Marine Environment Protection Committee (MEPC) meeting, pending an adoption vote at the next MEPC in October. The proposal passed by a majority vote, with 63 nations in favor including EU states, the UK, China and India, and 16 members opposed, including Mideast Gulf states, Russia, and Venezuela. The US was absent from the MEPC 83 meeting, and 24 member states abstained. The proposal was accompanied by an amendment to implement the regulation, which was approved for circulation ahead of an anticipated adoption at the October MEPC. Approval was not unanimous, which is rare. If adoption is approved in October at a vote that will require a two-thirds majority, the maritime industry will become the first transport sector to implement internationally mandated targets to reduce GHG emissions. The text says ships must initially reduce their fuel intensity by a "base target" of 4pc in 2028 ( see table ) against 93.3 gCO2e/MJ, the latter representing the average GHG fuel intensity value of international shipping in 2008. This gradually tightens to 30pc by 2035. The text defines a "direct compliance target", that starts at 17pc for 2028 and grows to 43pc by 2035. The pricing mechanism establishes a levy for excessive emissions at $380 per tonne of CO2 equivalent (tCO2e) for ships compliant with the minimum 'base' target, called Tier 2. For ships in Tier 1 — those compliant with the base target but that still have emission levels higher than the direct compliance target — the price was set at $100/tCO2e. Over-compliant vessels will receive 'surplus units' equal to their positive compliance balance, expressed in tCO2e, valid for two years after emission. Ships then will be able to use the surplus units in the following reporting periods; transfer to other vessels as a credit; or voluntarily cancel as a mitigation contribution. IMO secretary general Arsenio Dominguez said while it would have been more preferable to have a unanimous outcome, this outcome is a good result nonetheless. "We work on consensus, not unanimity," he said. "We demonstrated that we will continue to work as an organization despite the concerns." Looking at the MEPC session in October, Dominguez said: "Different member states have different positions, and there is time for us to remain in the process and address those concerns, including those that were against and those that were expecting more." Dominguez said the regulation is set to come into force in 2027, with first revenues collected in 2028 of an estimated $11bn-13bn. Dominguez also said there is a clause within the regulation that ensures a review at least every five years. By Hussein Al-Khalisy, Natália Coelho, and Gabriel Tassi Lara IMO GHG reduction targets Year Base Target Direct Compliance Target 2028 4% 17% 2029 6% 19% 2030 8% 21% 2031 12% 25% 2032 17% 30% 2033 21% 34% 2034 26% 39% 2035 30% 43% Source: IMO Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil and gas lobby calls H2 'core competency,' hails 45v

25/04/10

Oil and gas lobby calls H2 'core competency,' hails 45v

Houston, 10 April (Argus) — The oil and gas industry views hydrogen production as a "core competency" and sees 45v tax credits driving US exports and innovation, according to the American Petroleum Institute (API). "We really see this, especially from the oil and gas perspective, as a core competency," said Rachel Fox, API director of policy and strategy, on a webinar Thursday hosted by ConservAmerica. "We have such an advantageous opportunity with this credit," said Fox. "When we're talking about the export opportunity, we really do hold the cards in terms of producing hydrogen at the lowest cost anywhere in the world." The 45V incentive has become a crucible in President Donald Trump's agenda to promote fossil fuels. A broad-based coalition of groups sometimes at odds with one another has coalesced in favor of 45V noting that it promotes manufacturing jobs across rural America and sets up US energy companies to dominate growing global demand for cleaner burning fuels. Nonetheless, ConservAmerica described such energy tax incentives as being "squarely in the crosshairs" as legislators gear up for budget negotiations in which the administration is looking to slash government spending to offset a promised corporate tax cut. By tying a tiered scale of incentives to carbon intensity, 45V has spurred oil and gas companies to develop technologies and practices that curb emissions, said Fox. "There's a lot of incentive to try to hit that $3 mark by getting your hydrogen produced at a really low carbon-intensity limit and so it's galvanized a ton of innovation and a ton of new ideas on how that can be done throughout the natural gas system," said Fox. Most of those ideas revolve around lowering the methane intensity of natural gas production or sourcing low-methane intensity natural gas, such as from biowaste, said Fox. Some environmental advocates are skeptical that emissions from natural-gas based hydrogen production can be driven low enough to qualify for the highest $3/kg tier with existing technology and that most oil and gas companies will instead have to use less lucrative 45Q credits that apply to carbon capture and storage technology (CCS). However, at least one major energy company, ExxonMobil, has said it is seeking 45V to advance its massive natural-gas based hydrogen and ammonia project in Baytown, Texas. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more