Cosmo Energy and Iwatani advance hydrogen business in Japan

The project will translate the collaboration between the two companies, based on a capital and business alliance concluded in April 2024, into a concrete capital investment.

The project involves Cosmo Oil restoring an idle hydrogen production unit – with a production capacity of 80 tpd – on the premises of its Chiba refinery in Ichihara City, Chiba Prefecture, Japan, and using hydrogen produced in the petroleum refining process as well as supplying a portion of it to the Iwatani Group. In turn, the Iwatani Group will liquefy the supplied hydrogen at a newly constructed liquefied hydrogen plant – with a production capacity of 11.6 tpd – on the same premises and deliver it to domestic customers by tanker trucks.

Through this initiative, Cosmo Energy will reliably produce and procure hydrogen required in the refining of petroleum products, further strengthening stable refinery operations and its foundation for reliable product supply. In addition, Iwatani will establish its fourth liquefied hydrogen plant in Japan, helping to achieve a stable hydrogen supply and meet increased demand.

Cosmo Iwatani Hydrogen Engineering LLC will undertake engineering, procurement, and construction (EPC) in this project. The company was established in November 2023 as a joint venture between Cosmo Engineering Co., Ltd and Iwatani, for the purpose of collaborating in the hydrogen-related project engineering business. The project represents the tangible realisation of the fruits of the two companies’ collaboration from the construction stage onward.

The two companies plan to advance the project with the aim of strengthening the hydrogen business across both groups, by combining Cosmo Energy’s expertise in hydrogen production and handling at its refineries, with Iwatani’s production, transportation, and storage network – which, according to Iwatani, supplies approximately 70% of all hydrogen in Japan, excluding on-site and piped supply.

Benefits of the project and expectations for the future

• Competitive hydrogen supply through synergies between the two companies: by consolidating production capabilities and reducing production costs compared with separate capital investments by each company, they will establish a competitive hydrogen supply chain.
• Strengthening the foundation for stable refinery operations and enhancing adaptability to future changes: by securing a new hydrogen supply source, they will establish a reliable system for securing hydrogen essential to refinery operations, whilst ensuring hydrogen security and scalability in anticipation of future restructuring in the petrochemical industry and structural changes in the industrial complex.

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/07102026/cosmo-energy-and-iwatani-advance-hydrogen-business-in-japan/