
Prakhar Panchbhaiya
Assistant Manager: Business Insights and Content
Supporting procurement teams with category intelligence, market research, price trends, supply-demand analysis, and strategic sourcing insights across key industries.

INPEX has started CO2 injection at its Kashiwazaki Hydrogen Park in Niigata Prefecture, advancing Japan’s integrated blue hydrogen and ammonia demonstration project. The operation captures carbon dioxide produced during hydrogen manufacturing and stores it underground, an essential step in lowering the emissions associated with hydrogen made from natural gas.
The captured CO2 is being injected into a subsurface reservoir in the Hirai area of the Higashi-Kashiwazaki Gas Field. Gas production at the field has already ended, allowing the depleted reservoir to be used for carbon storage. Linking hydrogen production with an operating carbon storage system gives the project the infrastructure required to demonstrate blue hydrogen production.
Natural gas for the project comes from the Minami-Nagaoka Gas Field in Niigata Prefecture, which is also operated by INPEX. This gives the project access to domestically produced feedstock rather than relying on imported natural gas for hydrogen production.
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The project covers more than hydrogen production alone. It is designed to connect hydrogen and ammonia production with carbon capture, underground storage and downstream use. INPEX describes it as Japan’s first demonstration project integrating the hydrogen and ammonia value chain from production through utilization.
Hydrogen produced at Kashiwazaki Hydrogen Park is being used for hydrogen-fired power generation, with the resulting electricity supplied within Niigata Prefecture. Starting CO2 injection means the project can now capture and store emissions generated during hydrogen production instead of releasing them directly into the atmosphere.
For blue hydrogen buyers, the development shows the importance of evaluating the complete supply chain when qualifying future suppliers. Reliable natural gas feedstock, CO2 capture equipment, transport and injection infrastructure, suitable storage reservoirs and downstream hydrogen demand all affect whether a blue hydrogen project can operate continuously. The Kashiwazaki project now has active CO2 injection alongside hydrogen production and utilization, providing a working demonstration of these linked operations.

Assistant Manager: Business Insights and Content
Supporting procurement teams with category intelligence, market research, price trends, supply-demand analysis, and strategic sourcing insights across key industries.





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