Australian Coal With CCS Could Deliver Clean Hydrogen To Japan Securing Thousands of Mining Jobs

Australia’s high-quality black coal, paired with carbon capture and storage (CCS), could provide Japan with a clean, reliable and cost-competitive hydrogen supply for under USD $4 per kilogram, according to a new international study.

LETA Chief Executive Officer Mark McCallum said the findings from the Electric Power Research Institute (EPRI) report show Australia has a major role to play in Japan’s hydrogen future.

 “This study proves Australian coal with CCS can deliver clean hydrogen at globally competitive prices – under USD $4 per kilogram – while meeting Japan’s strict emissions standards,” Mr McCallum said.

“Japan’s current and future hydrogen demand is enormous, but transporting hydrogen can be difficult and expensive. The model this study explores reduces both the cost and the complexity of supplying our regional trading partners with a cleaner energy future”.

“For Australia, this is about jobs and trade as much as energy. We can transform one of our most valuable exports into a clean fuel that keeps Australia at the centre of the region’s energy transition.”

The study examined hydrogen production in Japan using imported Australian coal, with 92.5% of the CO₂ produced captured and shipped to offshore geological storage sites in Malaysia.

The process achieves emissions performance that qualifies as “clean” under Japanese policy guidelines and avoids the additional costs of ammonia cracking or transporting hydrogen long distances.

The analysis found this approach can complement renewable hydrogen and natural gas reforming with CCS, diversifying supply and reducing reliance on a single technology. While many green hydrogen projects have struggled to commercialise, this study sets out a pathway that plays to Australia’s existing strengths, making an Australian hydrogen export industry achievable in the short-term.

Japan has set hydrogen supply goals of:

• 3 million tonnes annually by 2030.

• 12 million tonnes by 2040.

• 20 million tonnes by 2050.

At the scale assessed in this study, around 12-14 hydrogen plants would be sufficient to meet Japan’s 2030 target.

“This is not about replacing renewables,” Mr McCallum said. “It’s about working alongside them. Coal with CCS provides a credible, low-risk, near-term option that can scale quickly and deliver the clean fuels Japan needs while creating economic opportunity here in Australia.”

The full report is available here.

ABOUT EPRI

The Electric Power Research Institute (EPRI) is a leading U.S.-based, independent, non-profit research organisation that provides science and technology solutions for the electricity sector. Founded in 1972, it works with utilities, government and industry worldwide on energy reliability, environmental performance, and emerging technologies.