For
IAPH International Association of Ports and Harbors
Japan Seminar

Toward Carbon Neutrality

International Liquefied Hydrogen Supply Chains
July 9, 2024
Shigeru Yamamoto
Hydrogen Strategy Division

Contents

1. Why Kawasaki chose hydrogen?
2. International liquefied hydrogen supply chain
3. Recent Activity for Commercialization© Kawasaki Heavy Industries, Ltd. All Rights Reserved22. 川崎重工のこれまでの取り組みと今後のビジネス課題
Kawasaki Hydrogen RoadVideo© Kawasaki Heavy Industries, Ltd. All Rights Reserved

3

Contents

1. Why Kawasaki chose hydrogen?
2. International liquefied hydrogen supply chain
3. Recent Activity for Commercialization© Kawasaki Heavy Industries, Ltd. All Rights Reserved

4Structural issues related to energy supply and demand in Japan

13%

83%

Low energy self-sufficiency

Domestic primary energy
depends on fossil fuels

Stabilization of renewableenergy power◼ Securing diverse energy sources

Social Requirement◼ Energy that does not emit Green House Gas:GHG◼ Energy for stabilizing power supply© Kawasaki Heavy Industries, Ltd. All Rights Reserved

5Characteristics of hydrogen, which is a carbon-neutral energy source
Can be manufactured and transported fromrenewable energy sources around the world

No CO₂ emissions

Converted into stable energy

H₂H₂(1) Can be imported from renewable energy sources around the world
It can be produced and transported from a variety of primary energy sources, including renewable energy
sources from around the world.
There are also high expectations for the improvement of energy security.
(2) Contribute to the reduction of environmental impact
If hydrogen is produced from renewable energy, it can be used as a CO2-free energy.
(3) Conversion into stable energy
Secondary energy is difficult to store in large quantities, and if power is stored for a long time, it will causea large amount of energy loss due to self-discharge→ Hydrogen is easy to store and convert and can be stored in large quantities and stored for a long time.
It also contributes to the stability of the power supply and demand system.
© Kawasaki Heavy Industries, Ltd. All Rights Reserved

6Expectations for “Hydrogen" energy in Japan's

Energy Security
Stability
supply3E+S
Safetysecurity

Economic Efficiency
EconomySafety is a major
premiseSpread to a wide range of industries in Japan, expanding
infrastructure exports

Environment
Environment© Kawasaki Heavy Industries, Ltd. All Rights Reserved• Can be manufactured in a variety of ways and countries(Improvement of energy security through resource andgeographical dispersion)• Can be manufactured in Japan(contributing to the improvement of self-sufficiency)

Significant contribution to the reduction of greenhousegases(Zero CO2 emissions during combustion)

7

Necessity for an international hydrogen supply chain
Japan‘s renewable energy installation density is the highest level among major countries, and its
renewable energy generation costs are still higher than any other countries.

(kW/km2)

Renewable energy installed capacity
per flat land area

1,000

Renewable energy generation costs(2021)(Yen/kWh)Japan
17.4 yen

20Japan
9.6 yen500
10

3.7 yen00World
5.9 yenSolar powergeneration(First half of 2023)

11.8yenWorld
5.6 yenOnshore windpower generation◼

It is important to bring green hydrogen to Japan from overseas where renewable energy costs arelower than Japan.

◼

Convertion to liquefied hydrogen, ammonia, and MCH (methylcyclohexane) enables masstransportation.
Compiled by our company the Ministry of Economy, Trade and Industry Agency for Natural Resources and Energy in October 2023 with reference to "Current
Status of Renewable Energy in Japan and Overseas and Proposed Issues of the Procurement Price Calculation Committee for the Current Fiscal Year."© Kawasaki Heavy Industries, Ltd. All Rights Reserved

8How to transport hydrogen energy
There are many ways to transport hydrogen energy.
electricity

Power Lines

Short
domestic
continent

Gas

Pipeline
High-pressure gas
Liquefied hydrogen
LH2

Hydrogen
CarrierConversion

Long
distance
overseas

Ammonia
MCHJapan(Methylcyclohexane)

Note: High-pressure gas is defined by the High Pressure Gas Safety Act as "a pressure of 1 MPa (megapascal, about 10 atmospheres) or more at a normal temperature, and is actually 1 MPa or more."© Kawasaki Heavy Industries, Ltd. All Rights Reserved9Why Kawasaki Heavy Industries chooses liquefied hydrogenOverseas Source

Outer energy

Challenges

Japan

Maritime transportation

Safety Issues

Challenges in technology and costOuter energy

Liquefaction

Vaporization

LiquefiedHydrogenNo need for outer energy
for purification

Liquefied hydrogen Carrier

Site Area

Challenges in technology and costOuter energy

Synthesis
Outer energy

Outer energy

Ammonia

Ammonia Carrier

CrackingPurification

Site Area

Toxicity of ammonia
Challenges in technology and costOuter energy

Hydrogenation
MCH Carrier

MCHToluene supplyToluene carrier

Outer energy

Outer energy

Dehydrogenation

Purification

Site Area

Toxicity of toluene© Kawasaki Heavy Industries, Ltd. All Rights Reserved

10Technological Development of Liquefied Hydrogen
LNG：‐162℃‐162℃ LNG carriers andtheir track record ofincreasing size
The first domestically
produced LNG carrier

Liquefied hydrogen：‐253℃

1978

Liquefied Hydrogen Rocket Engine Combustion Test Facility(Akita, Noshiro) delivered liquefied hydrogen tanks

1981
540㎥ at JAXA Tanegashima Space Center
Construction of liquefied hydrogen storage tanks

1987
2010
A history of reducing costs
through mass transportation
LNG carriers: 45 vessels
LNG tanks: 58 units

Kawasaki announced in its Business Vision 2020
that it aims to use hydrogen as an energy source

2020

2022

Completed the world's first liquefiedhydrogen carrier ship " Suiso Flontier "Completion of transportation between Japan and Australia

Taking on the challenge of cost reduction with a large liquefied hydrogen carrier© Kawasaki Heavy Industries, Ltd. All Rights Reserved11Contents

1. Why Kawasaki chose hydrogen?
2. International liquefied hydrogen supply chain
3. Recent Activity for Commercialization© Kawasaki Heavy Industries, Ltd. All Rights Reserved

12Video© Kawasaki Heavy Industries, Ltd. All Rights Reserved

13Demonstration of the HESC Pilot project◼ Demonstration I⚫ Loading and unloading tests at LH2 terminal⚫ Full load trial voyage in Japan◼ Demonstration II
Verification of long-distance transportation technology

Kobe, Japan

Return to “Hy touch Kobe”（February 25, 2022）

9,000km

Hastings,Australia

Arrival at the port of Hastings（January 20, 2022）

Source：HySTRA
This presentation is based on results obtained from a project subsidized by the New Energy and Industrial Technology Development Organization (NEDO).
© Kawasaki Heavy Industries, Ltd. All Rights Reserved

14

The world’s first LH2 carrier “Suiso Frontier”
Vent Mast
Shore
connection

Tank Dome

Cargo Pipe
(Vacuum
Insulated Pipe)

Source：HySTRA■ Length o.a. 116.0 m■ Propulsion■ Breadth19.0 m■ Service speed abt. 13 knots■ Class/Flag

NK/Japan■ Complement© Kawasaki Heavy Industries, Ltd. All Rights Reserved

Oil fired diesel electric
25 persons

Cargo Containment System(1,250m3)
Tank Dome
Outer Shell
Inner Vessel
Vacuum Space

Saddle Support
for Outer Shell

Saddle Support
for Inner Vessel

Vacuum Insulated
Double Shell StructureThis presentation is based on results
obtained from a project subsidized by the
New Energy and Industrial Technology
Development Organization (NEDO).

1515

Hydrogen Energy Supply Chain (The HESC Pilot Project)
Liquefied Hydrogen Receiving Terminal “Hy touch Kobe”
loading armliquefiedhydrogen tank(2,500m3)

提供：HySTRA© Kawasaki Heavy Industries, Ltd. All Rights Reserved1616

Use of hydrogen energy in gas turbine power generation

Replacing the combustors only

Partial modification only
The modification cost isapprox. 10%of the total price of the gas
turbine engine

Achieving

Carbon-free Electricity
through hydrogen-only
combustion
Hydrogen mixed combustion
30%～100%© Kawasaki Heavy Industries, Ltd. All Rights Reserved(Space for explosion-proofing is a prerequisite.).

1717

Hydrogen Co-generation Demonstration Project◼ Co-generation system (CGS) with 1 MW class hydrogen gas turbine
has been installed in city area (Kobe Port Island)◼ Demonstrating power and heat derived from hydrogen to community[Organization] Kawasaki Heavy Industries, Obayashi Corporation, Kobe City,
Kansai Electric Power, Iwatani Sangyo, Kenes, OsakaUniversity© Kawasaki Heavy Industries, Ltd. All Rights Reserved

Kobe City

Demonstration
Site18

Contents

1. Why Kawasaki chose hydrogen?
2. International liquefied hydrogen supply chain
3. Recent Activity for Commercialization© Kawasaki Heavy Industries, Ltd. All Rights Reserved

19Development of hydrogen products for Commercial Chains
2021
Pilot Demonstration

Demonstrating the feasibility of hydrogen production
and long-distance maritime transportation(Approximately 1/100 scale of commercial level)

HySTRA1,250m3

2,500m3~2030
Development of commercial-scale equipment issteadily underway at Kawasaki Heavy Industries

Commercialization
Demonstration

160,000m3

50,000m3

2031~

From equipment installation tooperation
Financially independent.

CommercialChains

160,000m3×2© Kawasaki Heavy Industries, Ltd. All Rights Reserved

50,000m3×4（Plan）
20

“Collaboration with hydrogen partners” progressing in bothhydrogen supply and demand creation■Social implementation cannot be achieved by a single company.
■It is important to "cooperate with hydrogen partners" to create a society wheremany hydrogen related parties can use hydrogen.

Participating companies：150（Founding 13 members in 2017）

Japan Hydrogen
Association(JH2A）
Member：413・(Nov.2023)（Founding 87 members in 2020）

CO2-free Hydrogen Energy
Hydrogen Small mobility &Supply-chain
Engine technology（HySE）
Technology Research
Member 6Association
Member:3（Founding 3 members in 2023）（Founding 3 members in 2020）＜Partners in major hydrogen-related project＞
METI, MLIT, MOE, Kyoto Univ., Osaka Univ., Kobe Univ., Kobe municipal, NEDO, IWATANI, Shell Japan,
J-POWER, MARUBENI, ENEOS, KAWASAKI KISEN, OBAYASHI, The KANSAI ERETRIC POWER,
JAPAN ENGINEYANMAR POWER TECHNOLOGY, TOYOTA, YAMAHA, INPEX etc.
© Kawasaki Heavy Industries, Ltd. All Rights Reserved21Demonstration Project in Europe

One of the World’s First 100% Hydrogen to Power Demonstrations on Industrial Scale Launches in LINGEN, GERMANY

Power output:30MWclass（Hydrogen~100%）

https://global.kawasaki.com/news_211209-2e.pdf© Kawasaki Heavy Industries, Ltd. All Rights Reserved22Collaboration with countries with high hydrogen production

Signed a strategic collaborationagreement with UAE energy company(ADNOC) to build a liquefied hydrogen
supply chain

Saudi Energy Minister Prince Abdulazizbin Salman and Investment Minister
Khalid Al Falih visit the ship

April,2023

July,2023© Kawasaki Heavy Industries, Ltd. All Rights Reserved

Japan-Australia Economic Conference
Madeleine King, Minister for Resources,
Australian Federal Government, and Tim
Pallas, Minister for Finance, Victorian
Government.

Oct,2023

23

Toyota used hydrogen produced from Australian lignite
being transported to Japan

Ministerial Approval Granted to Form Research
Body “HySE” for Development of Hydrogen
Small Mobility Engines to Help Build
Decarbonized Society

HySE-X1
Retracing the Tracks ofthe 2024 Dakar Rally
May 2023Photo by Toyota Motor Corporation© Kawasaki Heavy Industries, Ltd. All Rights Reserved24

Expanding hydrogen fuel to Marine and Aviation⚫ Know-how to burn hydrogen safely and cleanly developed through hydrogen power generation⚫ Pursuing Kawasaki's combustion technology further, leading the world in mobility internal
combustion engine

Development ofHydrogen-Fueled Vessel
Propulsion System * 1
Complete lineup for various
applications by around 2026

Hydrogen Aircraft CoreTechnology Development
Project* 2

Joint Research on
Hydrogen Engines

Promote development in anticipationof full-scale launch after 2035

Domestic two- and four-wheelmanufacturers collaborate to develophydrogen engine*1 NEDO Green Innovation Fund Project "Development of a Hydrogen Fuel Ship Propulsion System" (about 21.9 billion yen in subsidies)(Yanmar Power Technologies to be Adopted in Consortium with Japan Engine Corporation)*2 NEDO Green Innovation Fund Project "Core Technology Development for Hydrogen Aircraft" (grant: about 18 billion yen)
© Kawasaki Heavy Industries, Ltd. All Rights Reserved25

Carbon Neutral Airport
Airbus, Kawasaki Heavy Industries partner to study use of hydrogen in the airport

H2 supply toaircrafts
H2Aircraft

H2 SupplyVehicleFuel CellBusH2Storage

Fuel Cell Train

Loading System© Kawasaki Heavy Industries, Ltd. All Rights Reserved

LH2Carrier

H2 Power and Heat Supply

LH2: Liquefied Hydrogen

26

Kawasaki's Efforts in Hydrogen-Related Businesses andCooperation with Other Companies

Hydrogen valve
Liquefied hydrogen supply chain

FCV vehicle

Precision Machinery & Robotics Company
Automobile Manufacturers

Kawasaki Rolling Stock

JR EastEnergy Solution& Marine Company

NEDO

GI FundBusiness

Marine hydrogenenginesubsidized businessHydrogen power
generation

Yanmar Power Technology,Japan Engine Corporation© Kawasaki Heavy Industries, Ltd. All Rights Reserved

ObayashiCorporationhydrogen aircraft

GI FundBusiness

Aerospace Systems Company
Airbus (Airport Infrastructure)

Hydrogen engine two-wheel/four-wheel
Kawasaki Motors

Four Japanese motorcycle companies,
Toyota and DENSO

27

Kawasaki CO2 Capture (KCC)© Kawasaki Heavy Industries, Ltd. All Rights Reserved28

Large-Scale DAC ready around 2025
KHI promotes CO2 capture business from the atmospherethrough large-scale DAC facilities (Approx. 500,000 - 1million t - CO2 / year)
Respond to contacts from energy companies
DAC image of 1 million t - CO2 / year

：空気(大気)の流れ
Air (atmospheric) flow

Advanced technology
Utilize advanced solid sorbent for
DAC and technologies establishedthrough demonstration projects

Energyconservation

Effective use of heatemitted from DACs

：COCO2free air
2フリー空気モジュール
A module structure

Renewable energy
Use of renewable energy

Features ofKCC-DAC

Larger scale
Andlower cost
Module mass production

Simplification
Installation withmodular construction(assembled at factory)© Kawasaki Heavy Industries, Ltd. All Rights Reserved29© Kawasaki Heavy Industries, Ltd. All Rights Reserved30