The facility, which converts natural gas into hydrogen while capturing and storing the resulting carbon dioxide underground, is a key component of the company's long-term strategy for energy transition.
Japanese natural resources behemoth, Inpex Corporation, has officially inaugurated a cutting-edge test facility in Niigata Prefecture, central Japan, dedicated to the production of "blue hydrogen" and the subterranean storage of associated carbon dioxide (CO2). This project, known as the Kashiwazaki Hydrogen Park, represents a major domestic milestone, being the first in Japan to integrate the entire value chain from the production of low-carbon hydrogen to its final utilization.
The facility utilizes domestically sourced natural gas from Inpex's nearby Minami-Nagaoka gas field as its primary feedstock. The core process involves converting the natural gas into hydrogen. Crucially, the CO2 generated during this process is not released into the atmosphere. Instead, it is captured using advanced Carbon Capture, Utilization, and Storage (CCUS) technology and injected into an underground reservoir—specifically, the depleted Hirai gas field within the Higashi-Kashiwazaki gas field—to drastically reduce emissions. This carbon capture and permanent storage step is what classifies the resulting energy carrier as "blue hydrogen," a low-carbon alternative.
The hydrogen produced at the Niigata facility has two primary utilization pathways. Firstly, it will be used to generate electricity on-site through the Kashiwazaki Hydrogen Power Plant, with the power supplied to the local grid for end users in Niigata Prefecture. This adheres to a "local production for local consumption" model, leveraging the company's long-standing operational base in the region. Secondly, a portion of the blue hydrogen will be converted into blue ammonia. Ammonia, a hydrogen derivative, is significantly easier to transport and store than hydrogen itself, making it a viable carrier for supplying clean energy to various consumers. The annual ammonia production is expected to reach around 700 tonnes during the demonstration phase.
The demonstration project is supported by the New Energy and Industrial Technology Development Organization (NEDO) and is also conducting joint research on subsurface CO2 storage with the Japan Organization for Metals and Energy Security (JOGMEC). This collaborative approach underscores the strategic national importance of the initiative in establishing viable and safe CCUS practices utilizing Japan's domestic depleted oil and gas fields. The project's findings will be crucial for scaling up future blue hydrogen and ammonia production, both domestically and internationally.
