On 6 June, the Japanese Government released its second Hydrogen Strategy, which was broadly consistent with a previous draft publicly released in April.
Under the plan, the Japanese Government will aim to generate 15 trillion yen (approx. AUD 160 billion) of public and private investment to develop supply chains for hydrogen (and fuel ammonia) over the next 15 years. The split in public-private investment is not yet clear.
The strategy extends Japan’s target for hydrogen out to 2040, by which time it aims to increase the supply of hydrogen to 12 million tonnes, representing a sixfold increase on current volumes and quadruple the amount targeted for 2030.
The strategy also calls for the introduction of a framework to offset the cost of hydrogen vis-à-vis competing energies. While details have yet to be released, reports suggest that the underpinning legislation could be introduced to the Diet as early as this Autumn (Sep – Nov). The strategy recommends that eligibility for funding should be based on the carbon intensity of the hydrogen/fuel ammonia, rather than its method of production or “colour”.
The strategy also highlights Japan’s ambitions to play a leading role in the development of international standards relating to hydrogen/ammonia (again, focusing on carbon intensity rather than colour) and calls for the development of three major hydrogen hubs and five medium-scale hydrogen hubs within Japan.
In addition, the plan sets a target for Japanese companies to achieve a 10 per cent share in the global market for electrolysis equipment by 2030.
While limited information on the strategy is presently available in English, further details are available in this blog by Chairman and CEO of the Institute of Energy Economics, Japan (IEEJ), Mr Tatsuya Terazawa: https://eneken.ieej.or.jp/en/
(Source: Australian Embassy Tokyo)