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Japan’s Iwatani Withdraws from Australian Green Hydrogen Project

by Geraldine S.
03/19/2025
in Green Supply Chains

Japanese gas company Iwatani has announced its withdrawal from a green hydrogen project in Queensland, Australia, following similar exits by other Japanese companies and the state government. The decision comes amid global challenges affecting large-scale decarbonization efforts.

The project, a collaboration between Iwatani, Marubeni, Kansai Electric Power, Australian energy company Stanwell, and Singapore-based Keppel, aimed to produce 70,000 tonnes of green hydrogen annually by 2028. A portion of the hydrogen was expected to be exported to Japan. However, the Queensland government recently halted further investment in the initiative, making continuation unfeasible. In response, Iwatani has closed its office in Queensland.

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Green hydrogen, produced using renewable energy to split water molecules, is considered a key resource for reducing carbon emissions across industries such as manufacturing, transportation, and power generation. However, the high costs associated with renewable energy and hydrogen production have led to challenges in scaling operations. Japan, where domestic production remains expensive, has been reliant on imported hydrogen to build its supply chain.

Iwatani, a leading supplier of hydrogen for industrial applications, has been investing across the hydrogen supply chain, including procurement, production, and sales. Despite growing interest in hydrogen as a clean energy source, high production costs and logistical challenges, such as the need to transport liquid hydrogen at extremely low temperatures, continue to impact profitability.

The hydrogen industry has seen other adjustments as well. Kawasaki Heavy Industries, which had planned a trial transporting hydrogen from lignite in Victoria, Australia, to Japan, has faced delays and has shifted its focus to domestic hydrogen procurement.

Stay current with supply chain report news at The Supply Chain Report. For international trade tools, see ADAMftd.com.

#HydrogenEnergy #GreenHydrogen #SustainableFuture #EnergyTransition #SupplyChainNews

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