H2 View understands the funds will be made available to Japan Susio Energy (JSE), comprising Kawasaki Heavy Industries (KHI) and Iwatani Corporation to facilitate exports of hydrogen produced through newly formed J-Power and Sumitomo Corporation joint venture, JPSC JV.

J-Power and Sumitomo are set to study the feasibility of hydrogen production from coal with carbon capture and storage (CCS) in the Latrobe Valley, Victoria, which could produce up to 30,000 tonnes per year.

According to the project partners, the carbon intensity of the hydrogen produced will be verified by the Guarantee of Origin scheme which is being developed by the Australian Government in line with global hydrogen markets, expected to assess and determine the carbon intensity of hydrogen produced.

Hydrogen produced at the Latrobe site will be supply to a JSE owned and operate liquefaction and shipping facility at the Port of Hastings, Victoria ahead of export.

The funding commitment comes as a key step in the commercialisation of the HESC, which in 2022 saw the first hydrogen export from the Victorian port to Japan onboard the ‘world’s first’ liquid hydrogen carrier ship, the Susio Frontier.

Read more: Australian hydrogen industry marks major milestone with first export of liquid hydrogen to Japan

“After a decade of working together with the Japanese, Australian, and Victorian Governments, our efforts to establish a world-first clean hydrogen energy supply chain has been rewarded,” said Dr. Eiichi Harada, CEO of JSE. “This is a truly watershed moment for our combined efforts to decarbonise global energy production.”

Jeremy Stone, Non-Executive Director of J-POWER, commented, “We are moving from start up to scale up phase, which is an exciting time for J-POWER and our joint venture partner, Sumitomo Corporation.”