LETA Commissioned Report: Powering Japan’s Hydrogen Future - Australia’s Coal Advantage with CCS

This report, prepared by the Electric Power Research Institute (EPRI) for LETA, examines how Australian black coal could be used to produce low-carbon hydrogen in Japan, using carbon capture, transport, and storage.  

The study is modelled on a Japanese site selected for its established coal import logistics. At this site, captured CO₂ is conditioned for ship transport and permanently stored in geological formations offshore in Malaysia. 

The study shows that hydrogen produced from Australian coal with carbon capture in Japan and offshore CO₂ storage in Malaysia is both practical and cost-competitive with other clean hydrogen production pathways. 

Key insights include: 

• Cost-competitive hydrogen: Levelised production cost of less than $4 USD/kg.

• Meets environmental benchmarks: Aligned with Japan’s subsidy requirements on carbon intensity. 

• Market and deployment readiness: Conditions are positive, provided near-term action is taken. 

• Scaling potential: Large-scale delivery will rely on permitting and bilateral agreements under the London Protocol.