SPECIAL FEATURE
THINKING ABOUT A HYDROGEN SOCIETY

A HYDROGEN VALUE CHAIN
SHAPED BY MHI GROUP

Governments and companies in many countries are currently trying to steer a course toward decarbonization, aiming for a carbon-neutral society with virtually zero CO2 emissions. A shift in energy sources is an important theme in decarbonization, and there are particularly high expectations for hydrogen. Not only energy companies, but also companies from other industries such as automobile and heavy industry manufacturers are working hard to develop and commercialize hydrogen technology. However, among the many forms of energy, why is hydrogen in the limelight? What is hydrogen, anyway? In this special feature, we will provide a beginner’s guide to review basic knowledge for the coming hydrogen society and shine a spotlight on the hydrogen value chain and related businesses being promoted by MHI Group.


H-IIA

H-IIA rocket No.42 on July 20, 2020 was launched from Tanegashima Space Center. The enormous amount of energy required for an H-IIA rocket to lift off is obtained by burning liquid hydrogen and liquid oxygen. The cloud of white smoke emitted from the main engine is water vapor generated by this combustion. MHI Group has been developing and improving on rocket launch technologies using liquid hydrogen since the 1980s, and now it is one of the Group’s best known hydrogen-related products.


Did you know?
The Basics of Hydrogen

Here, we will cover some basic facts about hydrogen that aren’t as well-known as you might think.

It’s light – really light

It only weighs 1/14th of air. It is the lightest substance on earth, harmless to humans, colorless, transparent, tasteless, and odorless.

MEMO
Due to its lightness, it was used as a gas for balloons in the past.
It’s light – really light

It’s highly flammable

It’s highly flammable

When hydrogen is combined with oxygen and ignites, it burns to form water. Hydrogen is far more flammable than other combustible gases. It combusts quickly and with a high temperature. The heating value of hydrogen is very high.

MEMO
Extremely high energy density.
In an enclosed space, the risk of ignition or explosion is high, making it difficult to handle.
On the other hand, in an open space, it will quickly diffuse into the atmosphere, making the risk of explosion low.
We already know how to safely handle hydrogen, and this knowledge is being put to use in a variety of industrial fields today.

Pure hydrogen is seldom found in nature

Since hydrogen readily binds to oxygen and carbon, it usually exists as a compound in nature. There is almost no pure hydrogen in the atmosphere.

MEMO
Pure hydrogen must be created from fossil fuels or electrolysis of water.
Pure hydrogen is
seldom found in nature

It is all around us in the form of water

It is all around us in the form of water

Hydrogen is abundantly present on Earth as part of water (H2O). It is also an element of many fossil fuels (hydrocarbons).

MEMO
There is no danger of depletion, and it can be used in a variety of industries.

It has been used for a surprisingly long time

Hydrogen was discovered by British chemist Henry Cavendish in 1766. It has been used as a gas in hydrogen balloons since 1783, and a prototype fuel cell was developed as early as 1839. People have been using it for a long time, including in rockets and spacecraft since the 1960s.

MEMO
Today, it is used in a wide range of fields, from fertilizers, semiconductors, and petrochemicals to the food sector.
On the other hand, most of the hydrogen used in industrial fields is produced with natural gas and other fossil fuels.
Henry Cavendish

No CO2 is produced when burning it

No CO2 is produced when burning it

When reacting with oxygen, it generates electricity and heat. Since it does not contain carbon, it does not produce CO2.

MEMO
Therefore, if we use it in engines, gas turbines, boilers, and fuel cells instead of fossil fuels, we can create electricity and heat without creating CO2!

Thus, the relationship between mankind and hydrogen has lasted for about 260 years, from the early days of its discovery to the present. However, unlike oxygen and nitrogen, it poses a safety risk and is not a substance that the general public is very familiar with. However, in recent years, expectations for hydrogen as a method of providing a stable energy supply to people around the world, protecting the global environment, and combating climate change have been rising from an SDGs perspective. Unlike fossil fuels, hydrogen cannot be mined. Therefore, it requires the construction of a value chain from artificial production through to use. On the next few pages, we will introduce the initiatives of MHI Group.


Toward the Establishment of a Hydrogen Value Chain

With the goal of realizing a carbon-neutral society, MHI Group is working to establish a value chain from the production of hydrogen to its usage through the further evolution of existing energy infrastructure and hydrogen technologies. To promote this value chain worldwide, it will be necessary to develop it in a way that is tailored to each region, taking into account social infrastructure, including the availability of renewable energy necessary for hydrogen production. In the future, we would like to further develop the hydrogen value chain and establish a hydrogen ecosystem in which various industries are globally connected around the resource of hydrogen to form a sustainable society.

Production

Hydrogen production equipment
Hydrogen production equipment
Water electrolysis equipment
Water electrolysis equipment

Hydrogen can be produced by reforming fossil fuels (the CO2 emitted is either released into the atmosphere (grey hydrogen) or captured (blue hydrogen)), or by electrolysis of water using renewable energy sources that do not emit CO2 (green hydrogen). However, grey hydrogen accounts for the majority of hydrogen produced today. As we move toward a carbon-neutral society, MHI Group predicts that blue hydrogen will become the mainstream in the medium term and green hydrogen in the long term in regions where it is difficult to secure renewable energy sources. Other methods include extracting hydrogen from methane without producing CO2 (turquoise hydrogen) and using heat or electricity from nuclear power (pink hydrogen), so development should be pursued from a variety of perspectives.

Storage and Transportation

Hydrogen compressors
Hydrogen compressors
Energy/CO2 carriers (dual-use vessels)
Energy/CO2 carriers (dual-use vessels)

Pressurizing hydrogen is essential at every step in the supply chain of hydrogen production, storage, transportation, and use. Thus, the compressor plays an important role. Mitsubishi Heavy Industries Compressor Corporation has an extensive track record manufacturing compressors that handle hydrocarbons, which mostly consist of hydrogen atoms. We are currently working on using our accumulated technological and product capabilities to bring a “100% hydrogen” compressor to the market in 2023.

When it comes to transportation, pipelines are more economical for short distances and carriers for long distances. There are several methods of transporting hydrogen by carrier, including liquifying it, adsorbing it into organic compounds, or transporting it in the form of hydrogen compounds such as ammonia, LNG(Note1), and LPG(Note2) and separating it at the destination. The point is that it is difficult to handle hydrogen in its original form. MHI Group considers that transporting hydrogen as a compound and separating it at the destination is the efficient means of transportation from both economic and safety perspectives. Mitsubishi Shipbuilding Co.,Ltd. has a proven track record in the design and construction of hydrogen compound carriers and an advantage in handling technology.

  • 1LNG: Liquefied Natural Gas. A liquefied form of methane and ethane.
  • 2LPG: Liquefied Petroleum Gas. A liquefied form of propane and butane. LNG and LPG, whose main components are found as natural resources, are cheaper to obtain than ammonia. However, since they both contain carbon, an efficient carbon treatment is required.

Usage

Hydrogen gas turbines
Hydrogen gas turbines
Fuel cell forklifts
Fuel cell forklifts
Hydrogen gas engines
Hydrogen gas
engines
Hydrogen based ironmaking
Hydrogen based ironmaking

Hydrogen can be used as a carbon-free alternative to fossil fuels. MHI Group is developing products such as hydrogen gas turbines, hydrogen gas engines, and fuel cell forklifts. In addition to fuel, we are also working on hydrogen reduction ironmaking, which involves using hydrogen to remove oxygen from iron oxide in the ironmaking process. Through these technologies, we will continue to reform our industry from a decarbonization perspective.


Key Players in the Hydrogen Business

MHI Group is aggressively pursuing hydrogen-related businesses. We spoke to some of the staff who are working on the frontlines in cooperation with the Growth Strategy Office’s Energy Transformation Taskforce

Production

New energy
Internal and external collaboration to establish a value chain

Satomi Koizumi

Clean Fuel Group,
New Energy X-Tech. Dept.,
NEXT Energy Business Div.,
Energy Systems

Satomi Koizumi

The New Energy X-Tech. Dept. aims to establish a value chain that includes the supply of primary energy needed for hydrogen production as well as the transportation, storage, and use of hydrogen. Currently, we are considering a blue hydrogen production and supply business utilizing the existing LNG infrastructure with our partners, as well as a green hydrogen production and supply business in Japan, the U.S. and Europe utilizing the water electrolysis equipment of HydrogenPro, in which we have an equity stake. In addition, we are investing in a startup that has innovative pyrolysis and catalytic turquoise hydrogen production technology.

In addition to developing our own proprietary technologies, we will be actively partnering with other companies that have innovative technologies to strengthen and diversify the hydrogen value chain.

Blue hydrogen value chain(image)

Storage and Transportation

Energy/CO2 carriers (dual-use vessels)
Toward an efficient and sustainable ocean future in 2050

Hiroshi Tanaka

Strategic Planning &
Operation Office,
Mitsubishi Shipbuilding Co.,Ltd.

Hiroshi Tanaka

We are currently looking into a new business model for decarbonization and better transportation efficiency by using carriers that usually return empty after delivering ammonia, LNG, or LPG (hydrogen compounds) to deliver liquified CO2.

At Mitsubishi Shipbuilding, our growth strategy is “MARINE FUTURE STREAM”, which is a roadmap of growth technologies to be developed by backcasting from our vision of the oceans in 2050. We are developing marine engineering based on growth technologies with the goals of “decarbonizing the maritime economy” through carbon recycling and other technologies and “effective utillization of the marine space” through the widespread use of operational support systems. The hydrogen value chain is one of the main pillars of these efforts. We will work to realize our vision in cooperation with Group companies by ambidexterity (using the cash flow generated by the mature shipbuilding business to develop growth technologies), thus taking advantage of MHI Group’s strength in developing new business models along the entire value chain.

Energy/CO2 carriers

Storage and Transportation

Hydrogen compressors
The race to develop a 100% hydrogen compressor

Takuya Sasaki

Planning Group, Corporate
Management Division,
Mitsubishi Heavy Industries Compressor Corporation

Takuya Sasaki

We are collecting and analyzing market information that will contribute to future business plans and strategies in the fields of chemicals, such as ethylene and PDH(Note1), in which Mitsubishi Heavy Industries Compressor Corporation excels; oil and gas, such as LNG, which is a low environmental impact energy source; and CCUS(Note2), ammonia, and hydrogen, which are attracting attention as a means of realizing a decarbonized society in the future. In order to improve our presence in these fields, we are also engaged in public relations activities through websites, social media, and industry newspapers in cooperation with overseas group companies.

Our mission is to contribute to the realization of a sustainable society by being first to market with compressors that handle 100% hydrogen. However, we cannot meet the needs of our customers with hydrogen compressors alone, so we will continue strengthening our ties with other MHI Group companies to develop even more attractive products.

  • 1Propane dehydrogenation. A process for removing hydrogen from natural gas (propane) to produce propylene.
  • 2Carbon dioxide Capture, Utilization and Storage
Hydrogen compressors
Hydrogen compressors

Usage

Hydrogen based Ironmaking
A completely new eco-friendly method of ironmaking

Daniel Spreitzer

Ironmaking, Steelmaking and Eco Solutions,
Technology & Innovation Direct Reduction,
Primetals Technologies Austria GmbH

Daniel Spreitzer

Hydrogen based iron-ore reduction is the world’s first ironmaking method that uses 100% hydrogen to produce iron by removing oxygen from iron-ore. Our know-how in ironmaking technologies combined with the expertise of colleagues from agglomeration, engineering and electrics & automation enabled us to develop this process that is 100% hydrogen-based, almost CO2-free and reduces costs. In spring we saw our first successful tests at the pilot plant, and we are now gathering the data for upscaling the plant to an industrial-scale prototype plant. We are convinced that HYFOR (hydrogen based fine-ore reduction) will be a key technology to contribute to our customers’ needs for green steel and, also to MHI’s Energy Transition strategy.

Hydrogen based Ironmaking

Working together as a group to establish a hydrogen value chain

Goro Saito

Group Manager, Energy Transition Group,
Business Development Dept.,
Growth Strategy Office

Goro Saito

We are now facing a major transition from the fossil fuel-centric energy and social systems that humanity has built up over the past 200 years. Many countries have set ambitious goals of becoming carbon neutral in the next 30 years, but we still don’t have a concrete roadmap for achieving this goal. MHI Group is in a position to lead the way in carbon neutrality, as we are able to provide a variety of products and solutions across the entire value chain, including hydrogen production, transportation, storage, and use, and to contribute to the construction of the chain itself. Of course, it is not enough to simply provide high-performance products, nor is this a problem that can be solved by a single company. In order to link the emerging hydrogen and CCUS markets to the medium- to long-term growth of MHI Group, we must actively lead the creation of these markets with the involvement of customers and partners.

The Growth Strategy Office is promoting business development through a virtual organization called the Energy Transition Task Force, whose members work in business units related to the hydrogen and CCUS chains. The key words “energy transition” and “decarbonization” are relevant not only to the members of the task force but also to many people in MHI Group. Let’s work together to lead this once-in-200-years revolution!

Hydrogen-Based Gas Turbine Combined Cycle (GTCC) Power Generation Project

Clean energy storage and power generation with hydrogen

Mitsubishi Power, Ltd. is running its Advanced Clean Energy Storage and hydrogen-based GTCC power generation projects in Utah, U.S.A.

The clean energy storage facility uses solar and wind power to electrolyze water and stores the resulting green hydrogen in underground salt caverns. It was launched in May 2019 and can store 150 GWh of energy to supply to power plants and other destinations.

The GTCC plant was commissioned by Intermountain Power Agency. It is planned to start operations in 2025 with a hydrogen co-firing rate of 30%(Note) and achieve 100% hydrogen by 2045.

  • Introducing a GTCC with a hydrogen co-firing rate of 30% (by volume) is expected to contribute to a maximum annual reduction of approximately 4.6 million tons of CO2 emissions (equivalent to the amount absorbed by a forest 2.4 times the size of Tokyo).
Illustration of energy storage and hydrogen power generation facilities
Illustration of energy storage and hydrogen power generation facilities
Intermountain Power Plant