Japan has taken a major step in clean shipping. A consortium led by Japan Engine Corporation and Kawasaki Heavy Industries has successfully tested the world’s first hydrogen-fueled main engine for a large commercial vessel.

This engine is designed for deep-sea cargo ships, not just small vessels. That makes it a key milestone. Most earlier hydrogen ship projects focused on ferries or short routes.

The 3% Problem: Shipping’s Emissions Challenge

The engine is a low-speed, two-stroke design. This is the standard for large ocean-going ships. It can run mainly on hydrogen fuel. In tests, it achieved about 95% hydrogen use at full load, showing stable performance.

The engine will be installed on a 17,500-deadweight-ton multipurpose vessel. The ship is expected to be delivered in 2027. It will then undergo a three-year demonstration period starting in 2028.

Shipping is a major source of global emissions. The sector produces about 2–3% of global greenhouse gas emissions, based on data from the International Maritime Organization (IMO).

Most ships today use heavy fuel oil or marine diesel. These fuels produce high emissions. As global trade grows, shipping emissions could increase without new solutions.

Hydrogen is one option. When used as a fuel, it produces no carbon dioxide at the point of use. This makes it attractive for long-term decarbonization.

However, scaling hydrogen for large ships has been difficult. Key challenges include fuel storage, engine design, and safety. Japan’s latest engine test shows that progress is being made.

How Hydrogen Engines Work in Large Vessels

Hydrogen-powered ships can use fuel cells or combustion engines. Japan’s new system uses combustion. This means hydrogen burns inside the engine, similar to diesel. This approach allows easier integration with existing ship systems. It also reduces the need for full redesigns of vessels.

The engine uses liquid hydrogen fuel and advanced injection systems. Engineers have focused on stable combustion and material strength. Hydrogen burns faster than traditional fuels, so precision is critical.

The project includes partners such as Mitsui O.S.K. Lines (MOL), Onomichi Dockyard, and ClassNK. These groups support design, safety checks, and future operations.

The move is part of Japan’s Green Innovation Fund. The Ministry of Economy, Trade, and Industry has funded the program with about 2 trillion yen to help the country reach carbon neutrality by 2050.

Japan’s Net Zero Strategy and Hydrogen Push

This hydrogen engine project fits into Japan’s broader climate strategy. The country has pledged to reach net-zero greenhouse gas emissions by 2050. This goal was announced by former Prime Minister Yoshihide Suga in 2020.

Japan sees hydrogen as a key part of its energy transition. Under its Basic Hydrogen Strategy, the government aims to expand hydrogen use across power, transport, and industry.

Japan plans to increase its hydrogen supply to 20 million tonnes per year by 2050, up from much lower current levels. The country is also investing in hydrogen imports, storage, and infrastructure.

Shipping plays a major role in this plan. Japan depends heavily on imports of energy and raw materials. Decarbonizing shipping is important for both climate and energy security.

• RELATED: Maritime Decarbonization: Japanese Shipping Giant NYK Partners with 1PointFive for DAC Credits

Projects like the hydrogen engine help link domestic policy with global action. They support Japan’s goal to build a full hydrogen value chain, from production to transport and end use.

Current Hydrogen Ferries in Operation

Japan has already started using hydrogen-powered ferries on real routes. One example is the Hanaria. This hybrid ship uses hydrogen fuel cells, lithium-ion batteries, and biodiesel. It began service in Kitakyushu in April 2024.

The ship can cut carbon dioxide emissions by 53% to 100% compared to regular vessels. It was built for a unit of Mitsui O.S.K. Lines and uses fuel cell technology developed with parts from Toyota.

Another example is the Mahoroba, built by Iwatani Corporation. This is a zero-emission hydrogen catamaran that can carry up to 150 passengers. It started commercial service in April 2025, transporting visitors to the Osaka-Kansai Expo.

In October 2025, the Tokyo Metropolitan Government agreed to bring the vessel to Tokyo Bay. It is expected to start operating there in fiscal year 2026. It will support environmental education and international events.

Japan has also invested in hydrogen transport systems. One example is the Suiso Frontier, which was launched to carry liquefied hydrogen across long distances. These efforts show that Japan is not only testing technology but also building the systems needed to scale hydrogen use globally.

From Ferries to Freighters: Scaling Hydrogen at Sea

Japan is part of a wider global shift. Many countries are testing hydrogen and other clean fuels for shipping.

For example, Norway launched the MF Hydra in 2023. Belgium introduced the Hydrotug 1 in 2024.

However, most of these vessels are small or operate on short routes. Japan’s project targets large cargo ships, which are more complex and more impactful for emissions.

Governments are also exploring hydrogen shipping corridors. These are planned routes where hydrogen-powered vessels can operate with proper fueling infrastructure. This global activity shows that hydrogen is moving from early testing to larger applications.

A $300B Hydrogen Market Meets Maritime Demand

The hydrogen economy is expanding quickly. Global demand is rising as industries look for low-carbon solutions.

Industry estimates suggest the global hydrogen market could exceed US$300 billion by 2030. Growth is driven by energy, transport, and industrial use.

In shipping, hydrogen competes with other fuels like ammonia and methanol. Each has strengths and challenges. Hydrogen stands out for its zero carbon emissions at the point of use.

Cost, Storage, and Infrastructure Barriers

Still, hydrogen has limits. Several barriers remain before hydrogen ships become common:

• High costs compared to traditional fuels,
• Limited supply of green hydrogen,
• Lack of port infrastructure, and
• Strict safety requirements.

Despite these issues, investment is growing. Governments and companies are funding research, pilot projects, and infrastructure.

Japan’s demonstration project will help address those gaps. The planned three-year trial will provide real-world data on performance, safety, and costs. If successful, hydrogen engines could become a practical option for large vessels. This would help reduce emissions from global shipping.

Can Hydrogen Power the Future of Global Trade?

Japan’s hydrogen engine test marks a key moment for the shipping industry. It shows that hydrogen can power not only small vessels but also large commercial ships.

The link to Japan’s net-zero strategy makes this development even more important. It connects national policy with global climate goals.

The coming years will shape how fast hydrogen shipping grows. With strong policy support and continued innovation, hydrogen could play a major role in building a low-carbon maritime sector.

• READ MORE: IEA Predicts 90% Drop in Shipping Emissions by 2050. Can Maersk’s Bio-Methanol Deal be a Game-Changer?

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A new analysis by Ember shows that solar energy, combined with battery storage, could meet up to 90% of India’s electricity demand at a lower cost than what most states currently pay for power. The findings highlight a major shift: clean energy is no longer just sustainable—it is becoming the most economical option.

India’s solar journey has already begun, but the real opportunity lies in scaling it up and making it available round the clock.

India’s Solar Potential Is Massive but Underused

India’s cumulative solar capacity as of March 2026 was 150.26 GW. While this sounds significant, the Ember report states that it represents only about 4% of the country’s estimated 3,343 GW ground-mounted solar potential. In simple terms, India has barely tapped into its solar resources.

This untapped capacity is enormous. The total feasible solar potential could generate nearly three times the country’s electricity demand in 2024. Even more striking, this estimate uses only a small portion of available land—just 6.7% of suitable wasteland, which is less than 1% of India’s total land area.

Moreover, this figure excludes other major opportunities. Rooftop solar alone could add over 600 GW, while floating solar projects may contribute up to 300 GW. Technologies like agrivoltaics, which combine farming with solar panels, could further expand capacity.

Solar power is already making a visible impact. In 2025, it contributed 9.4% of India’s electricity. During peak sunny hours, it met nearly a quarter of demand. However, the challenge remains clear: solar stops working after sunset. To fully unlock its potential, India must solve the “night problem.”

Why Solar + Storage Makes 90% Clean Power Possible

Now, battery storage is the missing piece. It allows excess solar power generated during the day to be stored and used at night. Thanks to falling battery costs, this solution is now economically viable.

• According to Ember’s modeling, solar combined with batteries can meet up to 90% of India’s electricity demand at a levelized cost of electricity (LCOE) of about INR 5.06 per kWh. This is cheaper than the average power purchase cost in many states today.

However, reaching 100% solar is not as simple. Each additional percentage beyond 90% requires significantly more solar panels and storage capacity. This leads to rising costs, making 90% the most practical and cost-effective target.

To meet this level of demand, India would need around 930 GW of solar capacity. This is still less than one-third of its total feasible ground-mounted potential. Alongside this, about 2,560 gigawatt-hours (GWh) of battery storage would be required.

In practical terms, for every 1 GW of average demand, the system would need about 4.9 GW of solar capacity and 13.5 GWh of storage.

• SEE MORE: India’s Solar and Renewable Energy Outlook to 2030: Impact of the US-India 18% Tariff Cut on Exports 

Seasonal Patterns Shape Solar Performance

Solar energy does not perform the same way throughout the year. Its effectiveness depends heavily on seasonal patterns and weather conditions.

The Ember report further highlighted that during the early months of the year, from January to April, solar radiation is strong. In this period, solar and batteries can meet nearly 100% of daily electricity demand. Batteries store excess energy during the day and release it at night, ensuring a stable supply.

In peak summer months like May and June, electricity demand rises by about 10%. Even then, solar and storage can still meet around 88% of demand.

The real challenge appears during the monsoon season. Cloud cover reduces solar output significantly, especially in July. During this time, solar and batteries can meet only about 66% of demand.

This limitation is not due to battery capacity. Instead, it is caused by reduced solar generation over several cloudy days. Batteries can shift energy from day to night, but they cannot store large amounts of power for extended low-sunlight periods.

This is why a balanced energy mix is essential.

Wind and Hydro Will Fill the Gaps

India does not need to rely on solar alone. Other clean energy sources can complement solar power effectively.

Wind energy is especially important. It tends to generate more power during the monsoon months, when solar output is low. This natural balance helps stabilize the overall energy system.

Hydropower and nuclear energy can also provide steady, reliable electricity. Together, these sources reduce the need for excessive solar and battery capacity, keeping costs under control.

As a result, solar becomes the backbone of the system, while other clean sources fill in the gaps. Looking ahead, solar will play a major role in meeting energy demand. Around 50% of India’s additional electricity demand through 2030 is expected to come from solar power.

State-Level Trends Show Strong Potential

The feasibility of solar-plus-battery systems varies across states. This depends not only on sunlight availability but also on how and when electricity is used.

States like Andhra Pradesh, Maharashtra, Karnataka, Telangana, and Tamil Nadu show strong alignment between solar generation and electricity demand. In these regions, demand peaks during sunny months, making it easier for solar to meet a large share of electricity needs.

For example, demand in these states is often 10% to 29% higher than average during high-solar months. At the same time, demand drops during the monsoon, which helps offset lower solar output.

Other states like Gujarat, Rajasthan, and Madhya Pradesh also show favorable conditions. Their demand remains relatively stable throughout the year, which makes solar integration smoother.

However, not all states are equally suited. Uttar Pradesh and West Bengal face more challenges. In these regions, electricity demand peaks during the monsoon, when solar output is weakest. This mismatch makes it harder for solar-plus-storage systems to meet demand efficiently.

These differences explain why the same solar and battery setup performs better in some states than others.

Transmission Will Unlock National Benefits

India’s renewable energy strategy already reflects a smart approach. Large-scale solar projects are being developed in high-resource states with strong sunlight and available land. At the same time, the country is expanding its transmission network to move electricity across regions.

This interconnected system allows solar-rich states to supply power to areas with higher demand or lower solar potential. It also improves the overall efficiency of the grid.

As transmission infrastructure grows, the benefits of solar and storage will spread across the country.

The analysis makes one thing clear: India has the resources to transform its power system. Solar energy, backed by battery storage, can deliver clean, reliable, and affordable electricity at scale.

• In the broader context, the Asia-Pacific region led the global BESS market, generating USD 17.31 billion in 2025 and expected to reach USD 21.32 billion in 2026.

However, the transition will require careful planning. Seasonal variations, regional differences, and the need for complementary energy sources must all be considered.

Still, the direction is clear. With falling costs and abundant resources, solar plus storage is no longer a future possibility—it is a present-day solution.

India now stands at a turning point. By scaling up solar and investing in storage and grid infrastructure, the country can move closer to a low-cost, low-carbon energy system that meets demand day and night.

• READ MORE: India Achieves 50% Non-Fossil Fuel Power Milestone: Solar Shines Bright 

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Disseminated on behalf of Surge Battery Metals.

Lithium Americas (LAC) has officially broken ground at Thacker Pass, Nevada. The project is advancing toward its first production target in 2028. LAC CEO Jonathan Evans said in the company’s news release that the project should be mechanically complete by the end of 2026. Commissioning will happen through 2027, with commercial production starting in 2028.

For investors watching Nevada clay lithium, this milestone is more than an update. It’s a market signal that could change the investment landscape.

De-Risking the Clay Lithium Category

For years, clay-based lithium has faced a single recurring objection: “It has never been done at a commercial scale.” Unlike brine or hard-rock lithium, sedimentary clay deposits presented a technological and operational unknown. Investors and lenders were cautious, capital costs were higher, and early-stage projects struggled to secure financing.

Thacker Pass changes that narrative. Once LAC makes battery-grade lithium carbonate from sedimentary clay at a commercial scale, it reduces risks for the whole category. Projects in Nevada now have clear proof that clay-based lithium can be mined and processed effectively.

The historical precedent is instructive. In Chile’s Atacama region, the first brine lithium projects proved the chemistry and cost-effectiveness of large-scale lithium extraction. Later projects attracted capital more easily and on better terms. This created a ripple effect, speeding up the region’s lead in global lithium supply.

Thacker Pass is playing that same role for sedimentary clay. Its success is not just a win for LAC. It marks a key milestone for the whole Nevada clay lithium sector, including the Nevada North Lithium Project (NNLP) of Surge Battery Metals (TSX-V: NILI | OTCQX: NILIF).

Understanding the Technical Landscape

Thacker Pass Phase 1 has lithium levels of 1,500–2,500 ppm. They plan to extract it using sulfuric acid leaching to create battery-grade lithium carbonate. The project is important both geographically and operationally.

It features a large pit, a big processing facility, and integrated infrastructure. This covers access roads, water supply management, and energy sources that meet Nevada’s rules.

While Thacker Pass shows commercial viability, it is crucial to note that NNLP and Thacker Pass are not technically the same. NNLP employs a different beneficiation approach and reagent chemistry to optimize recovery.

NNLP: The Higher-Grade, Next-Generation Project

Thacker Pass shows clay lithium on a large scale. NNLP positions itself as the next evolution of this asset class, with clear geological advantages:

• Grade: NNLP averages 3,010 ppm lithium, significantly higher than Thacker Pass Phase 1 material. Recent drilling results show that step-out drilling found a 31-meter intercept with 4,196 ppm lithium from surface. This gives NNLP a potential extraction advantage.
• Strip Ratio: NNLP’s 1.16:1 strip ratio is among the lowest in the sedimentary clay peer group. This indicates that it has favorable material movement requirements relative to ore recovered.
• Operating Costs: NNLP’s estimated OPEX is US$5,097/t LCE, lower than Thacker Pass guidance of ~US$6,200/t C1. It suggests that it has competitive economic positioning within the peer group.

Both projects produce battery-grade lithium carbonate using sulfuric acid leaching. However, each method is customized for the specific geology of the project. NNLP is not a copy of Thacker Pass. Rather, it is a next-generation clay project designed to leverage lessons learned while improving key parameters.

Moreover, infill drilling showed a steady, thick, high-grade core. It included intercepts like 116 meters at 3,752 ppm Li and 32 meters at 4,521 ppm Li. These results support future resource expansion. They also highlight the project’s scale, quality, and technical readiness as it prepares for a Pre-Feasibility Study.

• SEE MORE: Surge Battery Metals Strengthens Nevada North With High-Grade Expansion and Infill Success

Why Category De-Risking Matters for Investors

In emerging resource sectors, de-risking is often more valuable than the resource itself. Projects that validate a new extraction method or commodity unlock several market advantages:

1. Lower financing risk: Investors are more willing to fund projects once proof of concept exists.
2. Improved capital terms: Lending rates and equity expectations can improve when technology and economics are validated.
3. Accelerated project development: Developers can move faster, reduce contingencies, and focus on optimization rather than proving viability.

Thacker Pass’s progress effectively removes the “first-mover risk” from sedimentary clay projects. NNLP has higher grades, near-surface mineralization, and competitive OPEX. Now, it can be assessed on its own merits, not on doubts about large-scale clay processing.

Strategic Significance in the U.S. Lithium Market

The timing of Thacker Pass’s construction and NNLP’s development aligns with broader policy and market trends. Lithium is a critical input for electric vehicles, grid-scale storage, and advanced defense technologies. The U.S. government has emphasized domestic lithium production as a strategic priority.

In March 2025, President Trump signed an executive order called “Immediate Measures to Increase American Mineral Production.” This order directs federal agencies to speed up permitting and support domestic projects. It also aims to lessen dependence on foreign supply chains for critical minerals.

Projects like Thacker Pass and NNLP benefit from this policy. They provide secure domestic sources that boost the lithium supply chain.

Nevada is central to this strategy. Its clay deposits are among the largest and best in the U.S. They provide a stable base for domestic lithium production, which supports electrification goals and helps reduce reliance on imports.

Thacker Pass’s progress also sends a signal beyond the Nevada clay sector. It demonstrates that investors and capital markets are willing to back sedimentary clay projects at scale. That validation reduces perceived risk for future projects. It also speeds up permitting and development timelines as well as strengthens valuation metrics.

NNLP, with its superior grade and shallower resource, stands to benefit disproportionately. It is no longer constrained by questions of category viability. It can now be evaluated based on its geological quality, operational efficiency, and potential returns.

NNLP’s advantages, combined with the category de-risking effect of Thacker Pass, position it as a next-generation investment opportunity in Nevada’s clay lithium space.

Looking Ahead: Domestic Lithium’s Role in Energy Transition

Lithium demand is set to grow rapidly as electric vehicles, battery storage, and renewable systems expand. Securing a high-quality, domestic supply is critical to maintaining U.S. leadership in clean energy technology.

Thacker Pass proves that commercial-scale sedimentary clay lithium is achievable. NNLP demonstrates the potential for even higher efficiency and superior economics within the same category. Together, these projects show how local resources can support the energy transition while providing compelling investment opportunities.

NNLP’s higher grades, near-surface mineralization, low strip ratio, and competitive OPEX position it as a leading asset within a now-validated category.

For NILI investors, the message is clear: the clay lithium category is no longer theoretical, and NNLP is positioned to capitalize on the proof-of-concept success. The best news of the year is here—and it’s grounded in both science and strategy.

• READ MORE: China Cuts Battery Export Rebates, Sending Lithium Prices Up and Boosting NILI’s Role in Global Lithium Supply

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