Gas and Oil Driller Seeks to Create Export Hub for Green Hydrogen
According to Nikkei, Inpex plans to invest over 200 billion yen ($1.25 billion) in renewable energy projects in Australia by 2030. The Japanese energy group wants to establish Australia as a hub for exporting “green” hydrogen.
Expanding Renewable Capacity in Australia
By 2030, Enel Green Power Australia, a 50/50 joint venture with the Italian utility Enel, plans to increase its renewable energy capacity from over 300 megawatts at present to 2,000–4,000 megawatts. The expansion will be distributed fairly between storage batteries, onshore wind power, and solar power.
Powering the Ichthys Natural Gas Project
Australia is where the extra renewable energy will initially be marketed. A portion of the electricity will be used for the Ichthys natural gas project, which Inpex is spearheading off the northern coast of Australia, after 2030. According to Inpex’s forecast, Ichthys will account for approximately 70% of the company’s net profit in 2024.
Reducing Carbon Footprint through Renewables
About half of Inpex’s 7 million tonnes of greenhouse gas emissions in 2023 came from ichthys. Although Inpex plans to use carbon capture and storage to lessen its carbon footprint, it believes that renewable energy will eventually provide a solution.
Diversifying into Renewable Energy
Diversifying into Renewable Energy in Japan
Inpex currently has very little development in the renewables space in Japan; EGPA may be able to offer expertise for future projects there. Inpex will look for chances to develop geothermal power plants and offshore wind farms in Japan.
Exploring Green Hydrogen and e-Methane
Inpex is investigating green-hydrogen production, which releases green hydrogen when water is broken down using renewable energy. Additionally, green hydrogen and carbon dioxide could be mixed to produce e-methane, a substitute for ordinary utility gas. Tokyo Gas, a significant Inpex client, plans to invest in e-methane production.
Growing Demand for Hydrogen
If all governments fulfill their declared commitments, the demand for hydrogen is predicted to triple from current levels by 2030, according to the International Energy Agency. Fossil fuel consumption is expected to peak before 2030.
Reducing Reliance on Fossil Fuels
Ichthys and Middle Eastern oil projects have helped Inpex’s earnings, but the company is still worried about its reliance on fossil fuels. In Australia, more Japanese businesses are setting up green hydrogen operations, which aligns with Inpex’s strategy to diversify its energy portfolio.
