Inpex, a leading Japanese energy group, plans to invest over 200 billion yen ($1.25 billion) in renewable energy projects in Australia by 2030. This strategic investment aims to position Australia as a key base for exporting “green” hydrogen, leveraging the continent’s vast renewable resources.
Through its joint venture with Italian utility Enel, Enel Green Power Australia (EGPA), Inpex will significantly expand its renewable energy capacity from the current 300 megawatts (MW) to between 2,000 MW and 4,000 MW by 2030. The expansion will focus on solar power, onshore wind power, and storage batteries, split roughly equally among these technologies.
Initially, the additional renewable power will be sold domestically within Australia. Post-2030, a portion of this power will be allocated to the Ichthys natural gas project, which is a major contributor to Inpex’s revenue and carbon emissions. Ichthys, expected to generate 70% of Inpex’s net profit in fiscal 2024, accounted for half of the company’s 7.11 million tonnes of carbon dioxide emissions in 2023. Inpex plans to use carbon capture and storage to mitigate emissions, while renewable energy will play a critical role in future sustainability efforts.
EGPA’s development in Australia could also serve as a model for potential renewable projects in Japan, where Inpex currently has minimal presence in renewables. The company is exploring opportunities to build offshore wind farms and geothermal power plants in Japan. Additionally, Inpex is investing in energy storage solutions, which will allow electricity to be stored when demand is low and sold at higher prices during peak periods.
Inpex is also venturing into green hydrogen production, utilizing renewable energy to produce hydrogen through water electrolysis. This green hydrogen can be combined with carbon dioxide to create e-methane, an eco-friendly alternative to conventional utility gas. Inpex aims to supply Tokyo Gas with green hydrogen for its e-methane production initiatives.
The global demand for hydrogen is projected to triple by 2050, driven by international commitments to reduce carbon emissions, according to the International Energy Agency. In contrast, demand for fossil fuels is expected to peak before 2030. Despite strong earnings from Ichthys and Middle Eastern oil projects, Inpex is diversifying to reduce its reliance on fossil fuels and tap into the growing green hydrogen market.
