INPEX Starts Blue Hydrogen and Ammonia Demo Project Commissioning in Japan

By Editorial Dept - Jun 06, 2025

Japan’s largest energy company, INPEX Corporation (TYO: 1605), has initiated commissioning operations at its groundbreaking blue hydrogen and ammonia demonstration project in Kashiwazaki City, Niigata Prefecture. The milestone marks the start of natural gas introduction into the integrated clean energy facility, a first-of-its-kind development in Japan aimed at showcasing a full-cycle hydrogen-ammonia value chain, including CO? capture and storage.

Project Overview: Decarbonizing Domestic Gas Use

The project uses natural gas sourced from INPEX’s Minami-Nagaoka Gas Field as feedstock to produce hydrogen. To curb emissions, carbon dioxide generated during production is injected into depleted gas reservoirs in the Higashi-Kashiwazaki Gas Field using Carbon Capture Utilization and Storage (CCUS) technology. This allows the hydrogen to qualify as "blue," supporting Japan’s net-zero goals.

The hydrogen will supply local electricity generation, while a portion will be synthesized into ammonia via a low-temperature, low-pressure process developed in partnership with Tsubame BHB. The ammonia will also be distributed to consumers in Niigata Prefecture

Strategic Backing and Timeline

The demonstration is subsidized by Japan’s New Energy and Industrial Technology Development Organization (NEDO) under its fuel ammonia R&D program and features a joint CO? storage assessment with the Japan Organization for Metals and Energy Security (JOGMEC). Construction began in July 2023, and commissioning is expected to wrap up ahead of demonstration operations starting in fall 2025, including CO? injection and monitoring.

A Pillar of INPEX Vision 2035

This project is a central piece of INPEX Vision 2035, announced in February, which outlines the company’s strategy to become a leader in lower-carbon energy solutions, with a focus on hydrogen, ammonia, and CCUS. The Kashiwazaki initiative is positioned as a proof-of-concept for deploying blue hydrogen at scale, enhancing INPEX’s decarbonization credentials while leveraging Japan’s domestic gas reserves.

Regional and Sector Implications

With Japan seeking to diversify its clean energy sources beyond solar and nuclear, this project has the potential to serve as a model for hydrogen hub development, carbon storage using existing gas infrastructure, and local energy resilience. It also strengthens domestic supply chains in an area historically dependent on fossil fuel imports.