Japan’s Iwatani and Cosmo Energy Holdings have reportedly taken a Final Investment Decision (FID) to develop a hydrogen supply chain at the Chiba refinery, according to a report dated October 6, 2026. Operations are scheduled to begin in 2030. The project aims to secure a stable hydrogen supply for the refinery while expanding Iwatani’s domestic liquefied hydrogen production capacity.
The participants are Iwatani and its unit Iwatani Industrial Gases, and Cosmo Energy Holdings and its unit Cosmo Oil. The project is reported to proceed through the Cosmo Iwatani Hydrogen Engineering joint venture, established in 2023, building on an April 2024 capital and business alliance.
The scope is to restore the refinery’s idled hydrogen production facility and add liquefied hydrogen production and distribution capability. Refineries use hydrogen in processes such as desulfurization and cracking, so stable supply is important, and integrating hydrogen production and liquefaction on one site is intended to reduce costs. Specific technology or equipment suppliers were not mentioned in the announcement.
The hydrogen production plant has a capacity of about 80 metric tons per day and the liquefied hydrogen plant 11.6 tons per day. Investment is reported at about ¥20 billion (about $126.5 million) from Cosmo Oil and about ¥30 billion from Iwatani Industrial Gases, roughly ¥50 billion in total. Iwatani currently supplies about 70% of Japan’s hydrogen supply.
The two companies see cost savings in consolidating production compared with separate investments.
First, restoring idled refinery assets into a hydrogen hub is regarded as capital-efficient because it uses existing infrastructure without new land. Second, using the refinery’s own hydrogen demand as anchor demand can reduce early demand uncertainty for liquefied hydrogen. Third, partnerships between refiners and industrial gas companies are drawing attention as a model combining feedstock, equipment and distribution capabilities. Fourth, the 2030 start-up target shows that hydrogen is a long-horizon investment area.
First, whether the hydrogen production method, including feedstock and carbon reduction approach, is disclosed. Second, whether offtake for the liquefied hydrogen is secured. Third, whether equipment suppliers and the EPC contractor are announced. Fourth, whether the investment schedule aligns with Japanese government hydrogen support programs.