In a recent move, Cosmo Energy Holdings Co., Ltd. and Iwatani Co. have jointly decided to invest in the development of their hydrogen portfolio in Japan, mainly through the restoration of an operational hydrogen production unit and the development of a new liquefied hydrogen plant.

The project will turn the cooperation between the two companies into capital investment, based on a capital and business alliance which was concluded in April 2024.

The project includes Cosmo Oil’s conversion of a decommissioned hydrogen production facility having a capacity of 80 tpd at its Chiba refinery in Ichihara City, Chiba Prefecture, Japan, and the supply of some of the hydrogen which is produced in the petroleum refining process to the Iwatani Group.

The Iwatani Group will then liquefy the incoming hydrogen at a newly built liquefied hydrogen plant that has a production capacity of 11.6 tpd in the exact same premises and then deliver it to local customers via tanker trucks.

With a backdrop of expanding the hydrogen portfolio in Japan, through this initiative, Cosmo Energy will ensure stable production and procurement of the hydrogen needed to refine petroleum products, which will further enhance dependable refinery operations and establish the basis for a reliable supply of products. Furthermore, Iwatani will build a fourth liquefied hydrogen plant in Japan to ensure a stable supply of hydrogen and meet the growing demand.

Cosmo Iwatani Hydrogen Engineering LLC will provide engineering, procurement and construction – EPC services for the project. The company was founded in November 2023 as a JV between Cosmo Engineering Co., Ltd., and Iwatani to work together on the hydrogen-related project engineering business. The project is the physical manifestation of the results of the cooperation between both companies from the construction stage.

The two companies intend to move the project forward to bolster the hydrogen business of both groups, integrating the know-how in hydrogen production of Cosmo Energy and handling at its refineries with Iwatani’s production, transportation and storage network – which Iwatani says accounts for about 70% of all hydrogen in Japan, excluding the on-site and piped supply.

Benefits and expectations of the project for the future

• Competitive hydrogen supply through synergy between both the companies – They will create a competitive hydrogen supply chain by combining capacity for production and lowering production costs in comparison to distinct capital investments by each company.
• Building a foundation for reliable refinery operations and improving flexibility for future changes – Securing a new hydrogen supply source so as to develop a dependable system for acquiring hydrogen, which is vital to refinery activities, while guaranteeing hydrogen safety and scalability in preparation for future restructurings within the petrochemical industry along with structural changes across the industrial complex.