Kawasaki Heavy scales back hydrogen ambitions

Kawasaki Heavy Industries Shifts Hydrogen Strategy

Kawasaki Heavy Industries (KHI) has made a significant change in its hydrogen sourcing strategy. The company has decided to abandon its plans to source hydrogen from Australian brown coal. This decision comes in response to delays in construction approvals that have hindered progress. Instead, KHI will now focus on sourcing hydrogen domestically in Japan. This shift also includes a change in the size of hydrogen carriers the company plans to develop, moving from larger vessels to smaller ones.

Shift from Australian Coal to Domestic Hydrogen

Kawasaki Heavy Industries initially aimed to tap into Australia’s brown coal reserves for hydrogen production. However, the company faced numerous delays in obtaining the necessary construction approvals. These setbacks prompted KHI to reevaluate its strategy. The decision to source hydrogen from Japan allows the company to streamline its operations and reduce reliance on international supply chains.

By focusing on domestic production, KHI can better control the quality and supply of hydrogen. This move aligns with Japan’s broader goals of increasing its hydrogen capabilities and reducing carbon emissions. The Japanese government has been actively promoting hydrogen as a clean energy source. By sourcing hydrogen locally, KHI can contribute to these national objectives while also ensuring a more stable supply for its operations.

In addition to changing its sourcing strategy, KHI is also adjusting its plans for hydrogen carriers. The company had initially envisioned building ships capable of transporting up to 160,000 cubic meters of hydrogen. However, it has now scaled back its ambitions. KHI will focus on developing smaller hydrogen carriers, with a capacity of up to 40,000 cubic meters. This change reflects a more cautious approach to the emerging hydrogen market.

Coal trade to return to 2019 levels

The Suiso Frontier: A Landmark in Hydrogen Transport

Kawasaki Heavy Industries has been at the forefront of hydrogen transport technology. Since 2022, the company has operated the Suiso Frontier, the world’s first liquefied hydrogen carrier. This vessel has played a crucial role in demonstrating the viability of hydrogen as a transportable energy source. The Suiso Frontier has a capacity of 1,250 cubic meters, showcasing KHI’s innovative approach to hydrogen logistics.

The experience gained from operating the Suiso Frontier has provided valuable insights into the challenges and opportunities in hydrogen transport. KHI’s decision to focus on smaller carriers may stem from these learnings. Smaller vessels could offer greater flexibility and lower operational costs, making them more suitable for the current state of the hydrogen market.

As the global demand for hydrogen continues to grow, KHI’s strategic adjustments position the company to remain competitive. By prioritizing domestic sourcing and smaller carriers, KHI aims to adapt to the evolving landscape of hydrogen energy. This shift not only reflects the company’s commitment to innovation but also underscores the importance of sustainability in the energy sector. As KHI moves forward, it will play a pivotal role in shaping the future of hydrogen transport and contributing to a cleaner energy future.

 

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