Kansai Electric to Retire Oil-Fired Units at Gobo Plant in October

Kansai Electric plans to retire oil-fired units at its Gobo plant from October. This decision aligns with the company's commitment to reduce greenhouse gas emissions and transition to cleaner energy sources. The retirement of these units is expected to support the company's sustainability goals and contribute to Japan's efforts to meet its carbon emissions targets.

Kansai Electric Power (KEPCO) has announced plans to decommission Units 1 and 2 of its oil-fired Gobo Power Station, beginning in October 2025. This decision aligns with the company's commitment to reduce greenhouse gas emissions and transition to cleaner energy sources Major Japanese utility to close oil-fired plants as reactors reopen^[1].

The retirement of these units is expected to support KEPCO's sustainability goals and contribute to Japan's efforts to meet its carbon emissions targets. The company aims to reduce its reliance on carbon dioxide-emitting sources as it restarts and builds nuclear power plants. The decommissioning process is scheduled to be completed by around June 2026.

In parallel, KEPCO has joined forces with Woodside Energy and Japan Suiso Energy, Ltd. (JSE) to advance the establishment of a liquid hydrogen supply chain between Australia and Japan. The collaboration, underpinned by a memorandum of understanding (MOU), aims to demonstrate the viability of hydrogen as a large-scale, low-carbon energy carrier Woodside partners with Japan on hydrogen^[2].

The H2Perth Project, planned by Woodside in Western Australia, will produce liquid hydrogen through natural gas reforming. The hydrogen will be shipped via specialized carriers to receiving terminals in Japan. Woodside has indicated its intention to achieve net zero Scope 1 and 2 greenhouse gas emissions from the outset of operations, subject to technical assessments, regulatory approvals, and commercial agreements.

The MOU reflects the signatories' shared ambition to accelerate the energy transition by leveraging technology, infrastructure, and cross-border collaboration. Japan has long been one of Australia's key energy trading partners, particularly in the liquefied natural gas (LNG) sector. With hydrogen expected to play a pivotal role in Japan's net-zero strategy, Australia is well-placed to replicate its LNG export success in the hydrogen domain.

The collaboration is set against a backdrop of growing government and industry interest in developing international hydrogen supply chains. Japan has committed to becoming a global leader in hydrogen use, with targets to reduce dependence on fossil fuels while ensuring energy security. Australia, with its abundant energy resources and proximity to Asia, is emerging as a preferred supply base.

While the MOU does not represent a final investment decision, it establishes a framework for ongoing cooperation and feasibility assessment. If realized, the project could provide a foundation for scaling hydrogen trade between Australia and Asia. The agreement signals more than a technological initiative — it reflects the strengthening of Australia–Japan relations as both nations move to pioneer the global hydrogen economy, supporting the delivery of cleaner, more sustainable energy for the future.