Japan's New Energy and Industrial Technology Development Organization (NEDO) will fund a joint proposal by Toshiba, Tohoku Electric Power Co., Inc. and Iwatani Corporation on the development of technologies for hydrogen energy systems. The project will see the partners investigating the configuration and specifications of a hydrogen energy system with the world's largest hydrogen production system, and that encompasses all processes from hydrogen storage and liquefaction to transportation and utilization. The partners will examine the feasibility of the business over the next year and produce a report by September 2017.

Japan's Ministry of Economy, Trade and Industry aims at increasing the share of renewable energy in the country in total power generation from 10.7% in 2013 to 22-24% by 2030. Since output from renewable energy sources is intermittent and fluctuates widely with the weather, the grid requires another compensatory power source. The hydrogen energy system is expected to provide a solution for grids with a high penetration of renewables, as it will be designed to convert renewable electricity into a large volume of hydrogen for long-term storage.

The project aims to study essential technologies for a hydrogen energy system that will play a key role in stabilizing grids and flattening output fluctuation. It will have a maximum capacity equivalent to 10,000 kW, and in operation it is expected to largely rely on renewable energy sources-solar photovoltaic and wind power. If it is found to be feasible, the system will be deployed in Fukushima prefecture in Tohoku, the northeastern region of Japan served by Tohoku Electric Power Co., Inc.

In addition to using hydrogen to offset grid loads, the system will also liquefy it for delivery to locations in Tohoku and beyond. Towards this, the project also aims to coordinate the overall operations of the hydrogen energy system, electricity grid control system and liquefied hydrogen demand forecast system with a new control system. This will optimize hydrogen production, hydrogen electricity generation and hydrogen gas supply.