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Production of CO2-free H2,

transcontinental LH2 transport,

H2-based power generation.

18th September, 2017

©HySTRA

© 2017 Kawasaki Heavy Industries, Ltd. All Rights Reserved Why Hydrogen?

Primary energy self-sufficiency ratios (%)1)

Norway 682.9 292 167.9 USA 90.8 UK 60.3 In or some regions, 56.5 Enhancement of energy security is very important Germany 39.1 • South Korea 18.3 • Difficult to increase capacity of renewable energy due to it’s high population and limited land place Japan 6

0 100 200 300 400 500 600 700 800 Hydrogen can - enhance energy security by increasing options for energy resources. - help introducing renewable energy by regulating its intermittency. - achieve decarbonization of all sectors of energy consumptions.

H2 be a solution for sustainable energy & economy!

1) Including renewable energy © 2017 Kawasaki Heavy Industries, Ltd. All Rights Reserved 2 Hydrogen Market in Japan Intermittency of Renewable energy:

compensated by H2 or natural gas fueled power generation

Min case (CCS available)

Max case (CCS difficult)

H2 market in JPN $26 – 96 Billion

1) Institute of Applied Energy 2) Ishimoto et al., International Journal of hydrogen energy,2017

© 2017 Kawasaki Heavy Industries, Ltd. All Rights Reserved 3 International Hydrogen Supply Chain Resourcing country Utilizing country

Industrial feedstock Affordable Oil refinery, Semiconductor and renewable energy solar battery manufacture

Transportation CO -free 2 Liquefied © Hydrogen stations hydrogen hydrogen vehicles etc. containers © Distributed power/heat generation Liquefaction/ Liquefied Hydrogen gas turbines loading hydrogen carrier Hydrogen gas Fuel cells, mCHP etc. JAXA Fossil Liquefied resource Power Plants hydrogen storage Combined CCS tanks Cycle power (CO capture & storage) 2 generators etc.

Production Transport & Storage Utilization Project started by HySTRA, Research association consists of Kawasaki, Iwatani, Shell, and J-Power *Members of Equipment Investment ~2030 ~2050 KHI estimation $7Billion $123 – 251 Billion

© 2017 Kawasaki Heavy Industries, Ltd. All Rights Reserved 4 Thank you for listening Kawasaki, working as one for the good of the planet

Kawasaki Heavy Industries, Ltd. Corporate Technology Division 1-14-5, Kaigan, Minato-ku, Tokyo 105-8315 Tel: 03-3435-2259 Fax: 03-3435-2081 http://www.khi.co.jp

© 2017 Kawasaki Heavy Industries, Ltd. All Rights Reserved 5