1. Japan's Strategy for Green Hydrogen - Trading Partnerships, Cost Analysis, and ASEAN Suppliers

Japan aims to achieve carbon neutrality by 2050 using hydrogen as a decarbonizing agent. The IEEJ presentation reveals the country's approach relying on blue and green hydrogen pathways. Japan prioritizes four international hydrogen trading partnerships, including Australia, Saudi Arabia, Chile, and the United States. Three hydrogen carriers, i.e., LH2, MCH, and NH3 are crucial for hydrogen transport. Studies indicate that green hydrogen sourced from Chile, with ammonia as the hydrogen carrier, offers the lowest cost, and blue hydrogen remains the most cost-effective option overall. The process efficiency is crucial to minimize conversion/reconversion steps. Additionally, Japan is exploring potential partnerships for green hydrogen with ASEAN regions, particularly Myanmar and Thailand.

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2. JERA's Contribution to Decarbonization: Supporting Ammonia Combustion Power Generation Demonstration Projects

To implement the Japanese government's Green Growth Strategy, which aims for hydrogen and ammonia to account for approximately 10% of total electricity generation by 2050, it is necessary to promote emissions-free thermal power generation and actively utilize energy sources like hydrogen and ammonia. In terms of supply chain development, ammonia production is already mature and cost-competitive. Therefore, ammonia and hydrogen have broad prospects as clean energy sources in multiple sectors. While establishing a clean fuel supply chain poses challenges, valuable insights can be gained from the experience of natural gas supply chains to facilitate expansion.

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3. Establishing a Cost-Effective Supply Chain: CQH2's Efforts in Connecting Central Queensland with Asia to Deliver Renewable Hydrogen and Support Partner Countries like Japan

Green hydrogen offers revenue diversification opportunities. Queensland can realize local manufacturing by fully leveraging the different components of the hydrogen supply chain and infrastructure. When establishing a feasible, large-scale renewable hydrogen supply chain linking Central Queensland with Asia, five crucial factors should be taken into account: strategic location, robust partnerships, efficient hydrogen procurement, reliable supply of renewable energy, and a strong relationship with local communities and government stakeholders.

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4. Significant Cooperation Potential between the MENA and Japan. Success Hinges on Efficient Resource Utilization, Optimized Logistics, and Tailored Applications.

• Autonomous solar power can play a crucial role in the success of projects, particularly when there are constraints on land and wind resources.

• To import green molecules, countries like Japan and Italy should aim for a short logistics chain for fast and easy transportation. Ammonia, with its high energy density and ease of transport, is the preferred option over converting it to hydrogen for transportation.

• Industrial projects involving hydrogen and ammonia are part of the entire industrial chain and should consider tailoring on the off-takers.

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5. Japan's Subsidy Scheme and GX Bill's Contribution to Narrowing the Cost Gap and Advancing Green Hydrogen Economy.

To calculate the cost of green hydrogen, one can consider only capital expenses, excluding operational costs and interest, which reveals a disparity compared to gas-fired power generation. Japan's subsidy scheme aims to address this gap by supporting the supply chain and clusters, expanding the hydrogen and ammonia market. The program applies to both green and blue hydrogen, accommodating various suppliers through differential contracts that bridge price differences between bids and reference prices, ensuring compensation between suppliers and the government. Subsidy amounts and supplier compensation vary based on supplier type and hydrogen production.

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6. Decarbonizing the Shipping Industry: Embracing Carbon-Neutral Alternatives such as Methanol to Replace Conventional Fuels.

The construction of ammonia or hydrogen fuel supply vessels creates opportunities for shipping industry expansion, following the strategies used in LNG and renewable energy sectors. Upstream focuses on wind power, CCS projects, and CO2 transportation, while midstream involves ammonia transport and storage units. Downstream, projects like ammonia-powered ships are feasible. Although methanol remains a priority for the shipping industry, challenges include production, fleet scaling, technology, and policy support. Limited global capacity necessitates investment and cooperation to meet ship demand. Improving the efficiency and sustainability of green methanol production is crucial.