Kawasaki Heavy Industries Bets on Clean Hydrogen

Kawasaki Heavy Industries (KHI), an engineering manufacturer headquartered in Japan, was aiming to scale up its hydrogen production and establish a global hydrogen supply chain. The initiative was in line with Japan's energy strategy, as the country seeks to transition to clean energy. The company faced challenges such as the high cost of hydrogen production, uncertainty of demands, as well as competition from other countries. KHI was aiming to scale up hydrogen production and infrastructure by 2030, but the pace at which the market for hydrogen would develop was unpredictable and there was a risk that the timing of hydrogen availability would not align with market demand. Despite such challenges, KHI’s past experience in scaling LNG infrastructure, its technological ambitions, and Japan’s commitment to hydrogen provided a strong foundation for success. KHI could potentially lead the hydrogen industry and support Japan's decarbonization goals.
Was it a smart choice for KHI to pursue its hydrogen strategy? Could KHI possibly scale up hydrogen production to a sufficient level and provide a solution at the scale that was necessary?