INPEX Corp. announced it has started commissioning work, including the introduction of domestically sourced natural gas, at its integrated blue hydrogen and ammonia production and utilization demonstration project in Kashiwazaki City, Niigata Prefecture. The commissioning began June 2 and marks a significant milestone in Japan’s pursuit of cleaner energy solutions.

This initiative is the first in Japan to implement a fully integrated process—from production to utilization—of hydrogen and ammonia, energy carriers that emit no carbon dioxide during use. The natural gas used as feedstock is supplied from INPEX’s own Minami-Nagaoka Gas Field, located in the same prefecture.

To mitigate environmental impact, carbon dioxide generated during the production process is captured and injected into depleted gas reservoirs in the Hirai District of the Higashi-Kashiwazaki Gas Field using carbon capture, utilization and storage (CCUS) technology. This approach aligns with Japan’s decarbonization strategy and underscores INPEX’s commitment to sustainable operations.

The hydrogen produced will be used to generate electricity, which will be supplied to local consumers in Niigata. A portion of the hydrogen will also be converted into ammonia for further local distribution, demonstrating the project's circular and community-oriented design.

The introduction of natural gas follows the completion of construction on the project’s plant facilities, which began in July 2023. The development has involved close coordination with local government bodies and residents, ensuring transparency and community engagement.

INPEX will first test auxiliary systems that utilize natural gas before moving on to the main hydrogen and ammonia production units. Full-scale demonstration operations are expected to begin in the fall of 2025, after the completion of the commissioning phase. CO2 injection into the designated reservoir will also begin at that time.

The project benefits from financial support through a subsidy program managed by the New Energy and Industrial Technology Development Organization (NEDO), under the “Development of Fuel Ammonia Production and Utilization Technologies” initiative. Additionally, CO2 storage evaluation is being carried out in collaboration with the Japan Organization for Metals and Energy Security (JOGMEC) as part of a pilot test to assess the use of domestic depleted oil and gas fields for long-term storage.

This project plays a key role in INPEX’s broader sustainability strategy, as outlined in its “INPEX Vision @ 2025,” which includes goals for advancing carbon capture and hydrogen-based solutions by 2035. The commencement of commissioning work reflects a concrete step toward a responsible energy transition.

INPEX, Japan’s leading exploration and production (E&P) company, develops and operates oil and gas projects across the globe. Dedicated to building a more sustainable future, the company delivers energy with a strong focus on environmental responsibility. As part of this commitment, INPEX is actively advancing lower-carbon solutions, including carbon capture and storage (CCS), hydrogen, and integrated power systems, while exploring emerging opportunities in the evolving global energy sector.