For decades, Australia's trade with Japan was built on iron ore and coal. The script has flipped: Japan needs clean energy it can't produce at home, and Australia has terawatts of potential.
For decades, Australia’s trade with Japan was built on iron ore and coal. But as of 2026, the script has flipped. Japan has realized that to hit its net-zero targets, it cannot produce enough clean energy at home.
The Australia-Japan Partnership on Decarbonisation isn't just a diplomatic handshake; it’s an industrial lifeline. While green hydrogen costs in Japan linger around $5.00/kg due to limited space for renewables, Australia is targeting under $2.00/kg by 2030.
The Logic: Trust: We have the established shipping routes and the "safe partner" reputation.
Infrastructure: Converting LNG terminals to handle Green Ammonia and Liquid Hydrogen.
Scale: Japan needs Giga-watts; Australia has Tera-watts of potential.
Australia isn't just selling a commodity; we are selling the solution to Japan's industrial survival.
Founder of Sovryn Consulting and Sovryn Energy. After losing a business to the 2022 Lismore floods and fighting back from a $750,000 debt, he now helps owner-led Australian businesses build companies that run without their owner - and helps directors through turnaround when the letters arrive.
Articles and field notes on turnaround, sovereignty, energy and building businesses that hold - straight from the Sovryn desk.
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