Japanese firms are working to procure hydrogen from overseas at less than one-third the current cost.
The fuel is seen as a promising next-generation energy source that can help achieve the goal of carbon neutrality. But its relatively high cost presents a challenge.
The project brings together energy giant ENEOS, machinery maker Kawasaki Heavy Industries, and hydrogen distributor Iwatani.
They will develop technology to produce large volumes of hydrogen using renewable energy and liquefy it overseas.
They will also build a large tanker to transport the liquefied hydrogen, as well as containers to store it.
They hope to begin deliveries in 2027, and eventually obtain about 200,000 tons annually. That's about 10 percent of the hydrogen currently used in Japan.