Woodside Energy has joined forces with Japan Suiso Energy, Ltd. (JSE) and The Kansai Electric Power Co., Inc. (KEPCO) to advance the establishment of a liquid hydrogen supply chain between Australia and Japan, signing a new memorandum of understanding (MOU) that underscores both nations’ commitment to clean energy cooperation.
The three companies will collaborate on a supply chain concept through which liquid hydrogen, produced at Woodside’s planned H2Perth Project in Western Australia, would be shipped via specialised carriers to receiving terminals in Japan.
The MOU aims to demonstrate the viability of hydrogen as a large-scale, low-carbon energy carrier supporting industrial decarbonisation.
Proposed for development within the Rockingham and Kwinana Industrial Zones south of Perth, the H2Perth Project is designed to produce liquid hydrogen through natural gas reforming.
Woodside has indicated that it intends to achieve net zero Scope 1 and 2 greenhouse gas emissions from the outset of operations, subject to technical assessments, regulatory approvals and commercial agreements.
The pathway to net zero would involve integrating carbon capture and storage (CCS) processes into operations, while also relying on carbon credits as offsets where necessary.
The staged approach is viewed as critical in ensuring the facility can achieve reliable hydrogen production while maintaining environmental and commercial viability.
Hydrogen is widely recognised as an essential fuel in the global effort to cut emissions from heavy industry, power generation and transportation.
The MOU reflects the signatories’ shared ambition to accelerate the energy transition by leveraging technology, infrastructure and cross-border collaboration.
Woodside, one of Australia’s largest energy producers, has been expanding its portfolio into hydrogen production and renewable energy projects.
Partnering with JSE, a company wholly committed to advancing hydrogen supply technology, and KEPCO, one of Japan’s leading utility providers, positions the collaboration at the nexus of production, transportation and end use.
Japan has long been one of Australia’s key energy trading partners, particularly in the liquefied natural gas (LNG) sector.
With hydrogen expected to play a pivotal role in Japan’s net-zero strategy, Australia is well-placed to replicate its LNG export success in the hydrogen domain.
The collaboration is set against a backdrop of growing government and industry interest in developing international hydrogen supply chains.
Japan has committed to becoming a global leader in hydrogen use, with targets to reduce dependence on fossil fuels while ensuring energy security.
Australia, with its abundant energy resources and proximity to Asia, is emerging as a preferred supply base.
While the MOU does not represent a final investment decision, it establishes a framework for ongoing cooperation and feasibility assessment.
If realised, the project could provide a foundation for scaling hydrogen trade between Australia and Asia.
The agreement signals more than a technological initiative — it reflects the strengthening of Australia–Japan relations as both nations move to pioneer the global hydrogen economy, supporting the delivery of cleaner, more sustainable energy for the future.
