Kawasaki Heavy Industries has made significant adjustments to its Japan-Australia hydrogen supply chain demonstration project. The company, facing challenges in procuring hydrogen from Australia due to delays in construction approvals, has decided to use hydrogen produced in Japan instead. While not completely ruling out coal-derived hydrogen from Australia in the future, they are considering other sources like the Middle East. To adapt to market needs, Kawasaki plans to employ smaller liquefied hydrogen carriers, reducing their capacity from 160,000 to 40,000 cubic metres. This move is aimed at enhancing the efficiency of early-stage hydrogen supply chains. The project, which received substantial funding from the Japanese government, is supported by both Japan and Australia as a strategy to shift towards cleaner energy and reduce carbon emissions. Hydrogen is viewed as a crucial element in Japan's plan to achieve carbon neutrality by 2050, and Australia's ambition to establish itself as a key hydrogen fuel exporter. The coal-to-hydrogen initiative represents a collaborative effort between the two nations to explore alternative energy sources and address environmental concerns.