Woodside Energy, Japan Suiso Energy (JSE), and Kansai Electric Power Co. (KEPCO) have inked a memorandum of understanding to develop a supply chain for shipping liquid hydrogen from Australia’s proposed H2Perth project to receiving terminals in Japan.
Signed at a ceremony in Osaka, Japan, on 25 September, the memorandum drops yet another piece into Australia’s carbon mitigation puzzle as the H2Perth project takes shape. Woodside said it expects to start Phase 1 construction in 2026 and commence full commercial operations by 2031.
JSE is developing a global supply chain for liquefied hydrogen and is building infrastructure to support hydrogen production, liquefaction, transport, and supply, including the Kawasaki LH2 Terminal in Kawasaki City, Japan. KEPCO supplies electricity across the Kansai region, including major cities such as Osaka, Kyoto, and Kobe.
H2Perth Eyes Net Zero
H2Perth has said it aims to achieve net zero Scope 1 and 2 greenhouse gas emissions from the start of operations with the help of carbon credit offsets, including those from the Bonaparte CCS project where Woodside, TotalEnergies, and Japan’s Inpex plan to sequester 2 mtpa of CO2 from Australia’s Ichthys liquefied natural gas (LNG) facility and possible carbon shipments from Japan.
As operator with a 100% participating interest, Woodside noted in its earnings report in August that it had “commenced pre-FEED studies for the initial phase of the (H2Perth) project,” which will produce both blue hydrogen by natural gas reforming combined with carbon capture and storage (CCS), and green hydrogen produced by electrolysis powered by renewable energy.
In parallel, Woodside said it expects this year to complete construction of its Hydrogen Refueller @H2Perth, a smaller-scale hydrogen production, storage, and refueling station adjacent to the main H2Perth facility, which will be on 80 hectares of vacant industrial land in the Rockingham Industry Zone south of Perth.
In its earnings report, Woodside noted, “Construction activities commenced for the (hydrogen refueller) project with major equipment packages including electrolysers and compressors installed on site. Major civil works are nearly completed and both electrical cable and tubing installation have commenced. Woodside is targeting ready for startup in Q4 2025, with first hydrogen production expected in the first half of 2026.”
Ammonia No; Hydrogen Yes
Woodside had planned to produce liquid ammonia as well as hydrogen at H2Perth but announced in its earnings report for the first half of 2024 that it would drop ammonia from the plan given customer feedback. Woodside said it would instead pursue more attractive ammonia markets such as the US, where it purchased the Beaumont Clean Ammonia Project in Texas from Europe’s OCI Global for approximately $2.35 billion in August 2024.
In announcing the Beaumont acquisition, which is still under construction, Woodside noted that ExxonMobil will provide CCS services “from available capacity in the Gulf Coast” to Linde, one of several feedstock providers, once construction of its feedstock facility completes in early 2026.
In Australia, the Bonaparte CCS project is expected to provide Woodside’s H2Perth with CCS services that support the buildup of carbon offset credits. As a partner in Bonaparte, Woodside noted in its latest investor report that “the Bonaparte CCS Assessment Joint Venture commenced pre-FEED and was awarded Major Project Status by the Australian Government.”
Ichthys’ Role
Woodside, TotalEnergies and Inpex intend to sequester 2 mtpa of CO2 from Ichthys LNG, which reports on its website production of 9.3 mtpa of LNG, 1.65 mtpa of liquefied petroleum gas, and 100,000 B/D of condensate at peak.
Wielding a 67.82% interest, Japan’s Inpex operates Ichthys, which ranks among Australia’s top 20 CO2 emitters by volume given that it is also one of the few energy projects globally that incorporate the complete chain of development and production where emissions occur: subsea, offshore, pipeline, and onshore.
Bonaparte CCS has acquired an offshore site 250 km west of Darwin (Fig. 1) for injecting CO2 below the seabed and, as of April, had already drilled two appraisal wells, as reported by NikkeiAsia.
TotalEnergies holds a 26% interest in Ichthys LNG. Other partners are Australian subsidiaries of CPC Corporation Taiwan (2.625%) and Japanese companies Osaka Gas (1.2%), Kansai Electric Power (1.2%), JERA (0.735%), and Toho Gas (0.42%).
