Liquid Hydrogen Export Deal Advances with Woodside, JSE and KEPCO

We’re looking at a pretty exciting twist in global hydrogen production: on September 25, 2025, Woodside Energy (Australia), Japan Suiso Energy (JSE) and Kansai Electric Power Co. (KEPCO) all shook hands on an MOU to build out a real-deal liquid hydrogen export chain. The plan? Crank out hydrogen at Woodside’s proposed H2Perth plant in Western Australia, supercool it down to cryogenic temps, then ship it off to Japan in high-tech carriers—complete with carbon capture and storage (CCS) aiming for net-zero Scope 1 and 2 emissions. They’re still ironing out the exact tonnage, but early numbers point to tens of thousands of tonnes yearly, with room to ramp up as demand grows.

A Historical Pivot

Japan’s been living off imported fossil fuels for decades, so it’s a no-brainer they’d jump at the chance for zero-emission technology. With its 2050 carbon neutrality target driving programs like the Green Innovation Fund, they’re pouring cash into big demo projects up and down the chain. Over in Australia, the old coal and LNG powerhouse is shaking things up—spreading its bets as global markets shift. This MOU marks the moment they move past one-off pilots into a fully scalable supply chain, tapping into Australia’s massive natural gas supply (hello, North West Shelf) and Japan’s growing hunger for clean fuels.

Anchoring at H2Perth

The H2Perth site sits in the Rockingham and Kwinana industrial hubs—areas that know a thing or two about petroleum and chemical exports. Being close to pipelines, roads and port berths shaves off costly lead times. Initially, it’ll produce blue hydrogen through steam methane reforming, but the plant’s modular by design. Down the road, they can slot in electrolysers to crank out green hydrogen once renewables get cheaper. Early sketches even include space for compression units, storage tanks and custom jetties for those cryogenic carriers.

How It Works

• Steam methane reforming: They break down natural gas into hydrogen and CO₂.
• Carbon capture and storage: Up to 90% of that CO₂ gets trapped and tucked away in deep rock formations.
• Liquefaction: Chill the hydrogen below –253°C to pack more energy into every litre.
• Cryogenic shipping: Specialized ships with top-notch insulation and boil-off gas recovery keep the cargo safe on the 8,000-km trek.

Strategic and Economic Stakes

Japan’s chasing steady, low-carbon hydrogen to clean up power, steel and heavy transport. For Woodside Energy, JSE and KEPCO, this Australia-Japan partnership isn’t just about ticking boxes—it diversifies portfolios and places an early bet on what could balloon into a multi-billion-dollar opportunity. The big pulls include:

1. Policy support: Japan’s Green Innovation Fund chips in subsidies, and Australia’s National Hydrogen Strategy has their back.
2. First-mover advantage: They’ll rack up precious know-how in long-haul liquid hydrogen export logistics.
3. Scale-up potential: Build a playbook that others—from the Middle East to North America—can copy.

Local Impact and Workforce

Western Australia is eyeing a serious boost—hundreds of new jobs in everything from plant operations to maritime tech. The ripple effect could hit construction, engineering and cryogenic-equipment manufacturing as Kwinana and Rockingham gear up for more liquid hydrogen export. Expect local supply chains to grow, covering safety systems, compressor stations and beyond.

Addressing the Risks

Of course, moving big volumes of liquid hydrogen export is still new territory. Boil-off management, ship design and safety protocols need to prove rock-solid. Some skeptics worry whether blue hydrogen—powered by natural gas—can truly hit net-zero if CCS falls short. And that hefty upfront cost for liquefaction plants and custom ships? It’ll have to get balanced by falling prices and solid offtake deals.

Policy and Regulatory Landscape

Getting this off the ground means juggling approvals from Japan’s Ministry of Economy, Trade and Industry (METI), the Western Australian Department of Energy and Australia’s federal Department of Climate Change, Energy, the Environment and Water. Harmonizing emission accounting, safety standards (ISO, IGC Code) and carbon capture and storage rules will be just as critical as the engineering. Most folks involved reckon they’ll hit financial close within 18 months.

Blue vs. Green Hydrogen

Right now, blue hydrogen—where you reform natural gas and stash CO₂ underground—is more plug-and-play than big-scale electrolysis. But the MOU explicitly leaves the door open for a switch to green hydrogen once renewable power gets cheaper and electrolyser capacity grows. It’s smart flexibility that lines up with the industry’s broader shift toward fully renewable pathways.

A Beacon for Global Trade

If this Australia–Japan corridor takes off, it could serve as a blueprint for mega-routes linking resource-rich regions—from the Middle East to North America—with Asian demand centers. It’s a real-world test of the entire value chain—wellhead to fuel cell in buses or boilers—under genuine commercial conditions.

Looking Forward

Keep an eye out for three big milestones:

• Signing binding deals and hitting financial close.
• Wrapping up Front-End Engineering Design (FEED) and kicking off procurement by mid-2026.
• First pilot shipments rolling out before 2030, clearing the way for full-scale exports.

It’s early days, but this MOU is a clear sign the industry believes sustainable energy can sail across oceans. If it works, we’ll look back on September 2025 as the moment liquid hydrogen export went from niche experiment to mainstream commodity.