Feasibility Study of CO2 free hydrogen chain 15 November 2012 Kenji Yoshimura Kawasaki Heavy Industries, Ltd. (KHI) 1
1. FS of KHI s CO2 free hydrogen chain 2. Comparison with renewable hydrogen 3. HyGrid Study Team (HGST) 2
Various CO2 free hydrogen H2 from hydro 3
CO2 free hydrogen chain (2025) Brown coal gasification 770t/day Australia liquefaction 770t/day base 50,000m3 4tanks carriers 40,000m3 4tanks base Japan car 50,000m3 Electricity 4tanks CCPP (650MW~) Co-generation CO 2 Storage Gas Engine Gas Turbine Fuel Cell Reduction Steel making for de-sulfur at oil refinery 4
Project schedule Pilot decision 10t/day hydrogen Pilot chain operation Pilot chain operation start 770t/day hydrogen Demo. Chain operation Commercialization Year '10 '11 '12 '13 '14 '15 '16 '17 '18 ~ '24 '25 '30 R&D Pilot chain Investigation,FS Construction Operation Demo. chain Planning Engineering Construction Pilot decision Technology Funding Consortium 5
Result of Demo. Chain (2025) FS loading base and carrier liquefaction Capacity:770t/day storage facility 50,000m 3 5 tanks carrier ( 2 ships ) Loading : 238,500t/year 6
Result of Demo. Chain (2025) FS cost (derived from brown coal) CIF cost 29.7 JPY/Nm 3 carrier Loading base 2.6 3.2 (1Euro= 100JPY) liquefaction 9.8 Arrival hydrogen: 225,400t / year production ccs Brown coal 8.6 2.9 2.3 FCV (Fuel Cell Vehicle): 3 million power plant : 650 MW 7
utilization in power generation (in Japan) Power generation cost [JPY/kWh] If Japan can import hydrogen of 30 JPY/Nm3 (CIF), it is More expensive than fossil fuels, but cheaper, more stable and massively available than renewable energy among CO2 free energy 50 Fixed tariff by FIT 20 years from July, 2012 40 42 30 (1Euro= 100JPY) 20 28.0 23.1 10 8.9 11.4 10.6 16 Nuclear LNG Coal Oil Wind Solar Source: Energy environment committee Report of verification committee for cost and so on 8
Comparison with RE hydrogen Brown coal gasification 770t/day Australia liquefaction 770t/day base 50,000m3 4tanks carriers 40,000m3 4tanks base 50,000m3 4tanks Japan car Electricity CCPP (650MW~) Co-generation CO 2 Storage Gas Engine Gas Turbine Fuel Cell Reduction Steel making Renewable Electrolysis Renewable Electrolysis for de-sulfur at oil refinery 9
Cost study (2025) Brown coal gasification 770t/day Australia liquefaction Capacity 1000t/day base Storage Capacity 14200t carriers Transport Capacity 11360t CIF base Storage Capacity 14200t Japan car Electricity CCPP (650MW~) CO 2 Storage @Electric cost 5.6 JPY/kWh 13.8 24.0 27.2 29.7 33 26.5 Renewable Electrolysis 37 39.9 42.5 45.7 (JPY/Nm3) (1Euro= 100JPY) @Electric cost 12 JPY/kWh 70 54 Renewable Electrolysis 73.2 Capacity 1000t/day Co-generation Gas Engine Gas Turbine Fuel Cell Reduction Steel making for de-sulfur at oil refinery 10
Cost study (2025) Comparison based on CIF (1Euro= 100JPY) CIF cost 29.7 JPY/Nm 3 carrier Loading base liquefaction production ccs Brown coal 2.6 3.2 9.8 8.6 2.9 2.3 CIF cost 42.5 JPY/Nm 3 carrier Loading base liquefaction @Electric cost 5.6 JPY/kWh Renewable electrolysis hydrogen production In Australia 2.6 3.2 9.8 70 JPY/Nm 3 liquefaction 16 @Electric cost 12 JPY/kWh Renewable electrolysis hydrogen production In Japan 26.5 54 11
production cost(jpy/nm 3 ) production cost(jpy/nm 3 ) production cost study with alkaline water electrolysis 50 45 40 35 30 25 20 15 10 5 0 With Project year: 30 year CAPEX 1.7% 5% Capital cost (Million JPY/(Nm 3 /h)} KHI s target of electrolysis plant including maintenance cost %: CF (Capacity Factor) OPEX 30 10% 25 24.1 20 20% 15 10 40% 5 2.4 100% 0 0 0.2 0.4 0.6 0 2 4 6 8 10 12 50 45 40 35 Japanese wind CF: 18% Australia wind CF: 38% (1Euro= 100JPY) 51.6 Electricity cost(jpy/kwh) 12
Liquefaction cost(jpy/nm 3 ) Liquefaction cost(jpy/nm 3 ) liquefaction cost study (1Euro= 100JPY) It depends on capital cost and electricity cost With operating availability 90% and Project year 30 30 25 20 15 10 5 0 CAPEX 1 10 100 1,000 50 45 40 35 30 25 20 15 10 0 0 10 10 2 10 3 0 10 10 2 10 3 Liquefaction capacity (t/d) 5 5 OPEX 0 1 10 100 1,000 Liquefaction capacity (t/d) 13
Storage cost(jpy/nm 3 ) tank cost study (1Euro= 100JPY) It depends on capacity cost and liquefaction speed (utilized availability). 50 With operating availability 90% and Project year 30 year CAPEX+OPEX 40 30 20 10 0 10 2 10 3 10 4 0 100 1,000 10,000 Tank capacity (t ) 14
HyGrid Study Team (HGST) Japan car CO 2 Storage Renewable energy Electrolysis Renewable energy Electrolysis Electricity CCPP Co-generation Gas Engine Gas Turbine Fuel Cell Reduction Steel making for de-sulfur at oil refinery HyGrid Study Team (HGST) was established in September 2012 Expensive but high value for national interest Current target is Domestic Premium Utilization Development Renewable Electrolysis storage Countryside new user 15
HyGrid Study Team (HGST) Current study Renewable Electrolysis storage Countryside new user Matching of Electrolysis & Wind power? Surplus power of wind power or grid? PV? Biomass? Smaller scale? Pressurized hydrogen? Comparison with battery? Matching of local user? Direct hydrogen user? (not for electricity) Value of Domestic Premium Utilization Development? Societal benefit? 16
HyGrid Study Team (HGST) Member Honda R&D Co. Ltd Iwatani Corporation Kawasaki Heavy Industries Kyushu University/I2CNER Mitsui & Co Nissan Motor Corporation Roland Berger Strategy Consultants Technova Inc Toyota Motor Corporation Toyota Tsusho Corporation November 2012 17
Energy Scale kw GW TW HyGrid Study Team (HGST) Basic concept Absorb larger energy scale and longer fluctuation HyGrid Wind power fluctuation Battery PV fluctuation min hour day week season Time Scale 18
HyGrid Study Team (HGST) Energy storage cost Cost of storage Battery (linear increase) HyGrid Amount of Energy 19
HyGrid Study Team (HGST) Demonstration Local HyGrid-A Local HyGrid-B Abroad hydrogen City Local HyGrid-C 20
Supplement 21
Introduction of KHI Corporate data Hydraulic components, others Founded:1878 Paid-in Capital JY104 billion Employees 32,706 Head offices: Tokyo, Kobe supplement Ship building Plant & Infrastructure 10% 7% 20% 19% Net Sales JY1,226billion 17% 11% 16% Motorcycle & Engine Aerospace Gas Turbines & Machinery Rolling Stock (April, 2010 ~ March, 2011) 22
Kawasaki Experience supplement LNG power plant LNG carrier Fertilizer plant Liquid hydrogen tank (Rocket launch system) lorry & container Gas engine LNG base Gas turbine Production Transport & Storage Utility 23
KHI s company policy on hydrogen To the future 2030 supplement Primary energy 1 次エネルギー Secondary 2 次エネルギー energy 1Nuclear energy 2Renewable energy 3Fossil fuels with CCS 自然エネルギー ( 水力 風力 太陽光など ) 原子力 化石燃料 ( 石油 天然ガス 石炭など石炭など ) Electricity 電力 storage 電力貯蔵 電力貯蔵 水素 storage 水素貯蔵 Power 動力 Transportation equipment, 輸送機器 動力機器 power equipment, boilers, etc. 24
Kawasaki Experience JAXA supplement Liquid hydrogen tank JAXA JAXA Rocket Launch Complex (the largest in Japan) 25
Kawasaki Experience supplement IWATANI Liquid hydrogen JAXA container & lorry JAXA 26
Zero Emission Zero Emission Need for CO2 free electricity after Fukushima supplement 26% Nuclear Renewable Nuclear Renewable 9% 25% 28% 13% Coal LNG Oil Amendment discussion of nuclear policy Needs for zero emission energy except nuclear LNG Present 2030 Our proposal Coal from fossil energy with CCS from renewable energy 27
price @ H2 Filling station [yen/nm3] utilization of FCV (in Japan) supplement Already economically feasible even with current gasoline price More advantages expected considering rising of gasoline price in the future station cost = CIF [30 yen]+distribution cost [30 yen] = 60 yen/nm3 150 Edited based on the paper of TOYOTA 125 100 FCV is more advantageous than gasoline car 75 Result cost 60 yen/nm3 50 110 120 FCV is more advantageous than hybrid car 28 130 140 150 160 170 Gasoline price [yen/l] 28