Cosmo Energy Holdings Co., Ltd. and Iwatani Corporation announced on October 6, 2026, that they have made the final investment decision to jointly advance a hydrogen business centered on the restoration of an existing hydrogen production unit and the construction of a new liquefied hydrogen plant at Cosmo Oil Co., Ltd.'s Chiba Refinery in Ichihara City, Chiba Prefecture.

Joint hydrogen venture moves to concrete investment

The Project translates the collaboration between the two companies, based on a capital and business alliance concluded in April 2024, into a concrete capital investment.

Under the Project, Cosmo Oil will restore an idle hydrogen production unit on the premises of its Chiba Refinery and use hydrogen produced in the petroleum refining process, supplying a portion of it to the Iwatani Group. The Iwatani Group will then liquefy the supplied hydrogen at a newly constructed liquefied hydrogen plant on the same premises and deliver it to domestic customers by tanker trucks.

Two plants, both targeted for 2030

The hydrogen production plant to be restored is located on the premises of Cosmo Oil's Chiba Refinery in Ichihara City, Chiba Prefecture. It will have a production capacity equivalent to 80 tons per day, will be operated by Cosmo Oil Co., Ltd., and is scheduled to begin operation in 2030. The investment amount for the restoration is approximately USD 130 million.

The liquefied hydrogen plant to be newly constructed will also be located on the refinery premises. It will have a production capacity equivalent to 11.6 tons per day, will be operated by Iwatani Industrial Gases Corporation, and is likewise scheduled to start operation in 2030. The investment amount for the new plant is approximately USD 190 million.

Engineering, procurement, and construction for the Project will be undertaken by Cosmo Iwatani Hydrogen Engineering LLC, a joint venture established in November 2023 between Cosmo Engineering Co., Ltd. and Iwatani for the purpose of collaborating in the hydrogen-related project engineering business.

According to the announcement, the Project represents the tangible realization of the fruits of the two companies' collaboration from the construction stage onward.

Strengthening refinery operations and hydrogen supply

Through the initiative, the Cosmo Energy Group will reliably produce and procure the hydrogen required in the refining of petroleum products, further strengthening stable refinery operations and its foundation for reliable product supply.

For the Iwatani Group, the new facility will become its fourth liquefied hydrogen plant in Japan, helping achieve stable hydrogen supply and meet increased demand.

The companies emphasized that hydrogen is indispensable to the refining of petroleum products and that securing a stable hydrogen supply will strengthen the foundation for stable refinery operations and reliable fuel supply.

Amid the renewed and increasing importance of energy security, they noted, securing hydrogen sources that are not affected by external factors is becoming ever-more critical.

Hydrogen's role in the energy transition

The announcement frames hydrogen as a clean energy source because it does not emit any CO2 during use. Demand is expected to increase across a diverse range of applications, including mobility, power generation, and space exploration, as society moves toward carbon neutrality.

Establishing a stable and competitive hydrogen supply chain is described as essential for the widespread adoption of the fuel.

Against this backdrop, the two companies will advance the Project with the aim of strengthening the hydrogen business across both groups by combining the Cosmo Energy Group's expertise in hydrogen production and handling at its refineries with the Iwatani Group's production, transportation, and storage network.

According to Iwatani, that network supplies approximately 70% of all hydrogen in Japan, excluding on-site and piped supply.

Synergies and future adaptability

The companies identified two principal benefits expected from the Project.

The first is competitive hydrogen supply through synergies between the two companies: by consolidating production capabilities and reducing production costs compared with separate capital investments by each company, the partners aim to establish a competitive hydrogen supply chain.

The second is strengthening the foundation for stable refinery operations and enhancing adaptability to future changes.

By securing a new hydrogen supply source, the companies say they will establish a reliable system for securing hydrogen essential to refinery operations while ensuring hydrogen security and scalability in anticipation of future restructuring in the petrochemical industry and structural changes in the industrial complex.

Builds on 2024 alliance

The Project builds on the capital and business alliance the two groups concluded in April 2024, which the companies referenced in a press release issued on April 23, 2024.

With the final investment decision now made, the collaboration between Cosmo Energy Holdings and Iwatani moves from a framework agreement into concrete capital investment at the Chiba Refinery, with both plants, the restored 80-ton-per-day hydrogen production unit and the new 11.6-ton-per-day liquefied hydrogen facility, scheduled to come online in 2030.

Cosmo Energy Group noted that the official language for its filings with the Tokyo Stock Exchange and Japanese authorities, and for communications with its shareholders, is Japanese, and that reference should be made to the original Japanese language materials regarding the English versions of the information posted on its website.

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