Japan's three leading shipowners, Mitsui OSK Lines (MOL), Nippon Yusen Kaisha (NYK) and Kawasaki Kisen Kaisha (K Line), have collaborated with Kawasaki Heavy Industries and industrial gas company Iwatani Corporation to form a new company, JSE Ocean, aimed at developing hydrogen carriers. This move is part of Japan's effort to rapidly build its maritime hydrogen supply chains. Each of the three shipping companies has taken a 16.6% stake in JSE Ocean, while Japan Suiso Energy (JSE) remains the majority shareholder with 50.2%.
The initiative aligns with Japan's Basic Hydrogen Strategy, revised in June 2023, which identifies hydrogen as an alternative to fossil fuels in its decarbonisation efforts. The strategy commits Japan to a target of producing 3 million tons of hydrogen per year by 2030, increasing to 12 million tons per year by 2040, and reaching 20 million tons per year by 2050. The cost of the hydrogen supply is projected to be approximately JPY30 /Nm3 in 2030 and JPY20 /Nm3 in 2050 upon arrival in Japan.
As part of the plan, JSE Ocean is expected to place its first ship order next year. Earlier, Japan had already pioneered seaborne hydrogen trades through Kawasaki Heavy Industries with the delivery of the Suiso Frontier, the world's first liquefied hydrogen carrier. Now, plans are underway to supersize this initial ship and introduce vessels capable of carrying up to 160,000 cu m on water soon.
In August 2021, the New Energy and Industrial Technology Development Organisation (NEDO) of Japan allocated a grant from the Japanese government’s Green Innovation Fund to JSE, Iwatani Corporation and ENEOS Corporation for the "Liquefied Hydrogen Supply Chain Commercialization Demonstration Project". In this project, JSE is set to establish the world's first large-scale hydrogen liquefaction and transportation technology, beginning with an initial 30,000 tons of hydrogen per year before scaling up. The project also aims to demonstrate a comprehensive and reliable global liquefied hydrogen (LH2) supply chain, covering hydrogen production, liquefaction, export from Australia, marine transportation, and import.
The surge in nascent seaborne trades such as liquefied CO₂ or hydrogen has provided a much-needed boost to struggling Japanese shipyards. These shipbuilders, who were pioneers of many of the liquefied gas carrier design breakthroughs in the 1970s and 1980s, aim to replicate their past success as the world transitions to new energy forms.
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