Japan to invest hugely in hydrogen for decarbonization

The government decided on a plan to generate public- and private-sector investment in the supply of hydrogen worth ¥15 trillion ($107 billion) over the next 15 years, part of a push to increase its use and speed up decarbonization.

Under the revised Basic Hydrogen Strategy, approved at a meeting between relevant ministers, the country also plans to increase its hydrogen supply sixfold from the current level of 2 million tons to around 12 million tons by 2040.

Since hydrogen does not emit carbon dioxide or other greenhouse gases when combusted, the utility sector can significantly cut emissions by mixing hydrogen with natural gas at thermal power plants, or by burning hydrogen as a fuel.

But while hydrogen does not emit carbon dioxide when burned, its production can lead to emissions, with the vast majority of it currently made using fossil fuels. The International Energy Agency stated in a report published last year that less than 1% of global production in 2021 was of low-emission hydrogen.

While it is hoped hydrogen will be used for various purposes, including as fuel for cars, challenges remain over its widespread adoption and use due to high production and transportation costs compared with conventional fuels such as coal.

By rolling out the strategy by 2040, the government hopes companies will be encouraged to become more actively involved in hydrogen initiatives, with the aim being to realize the commercialization of hydrogen power generation by 2030.

The government had already decided to grow the country’s hydrogen supply to up to 3 million tons in 2030, increasing to around 20 million tons by 2050.

With Japan aiming for net-zero greenhouse gas emissions by 2050, hydrogen is a key part of its plan to achieve a green transition, known in the country as “GX,” from the current fossil fuel-based economy to one centered on cleaner energy.

Hydrogen can also power fuel cell vehicles, and the government also plans to support the further introduction of synthetic fuels and ammonia using hydrogen.

Separately, in Japan’s latest energy white paper, was also released Tuesday, hydrogen was designated as a key material for pushing decarbonization in multiple sectors.

Hydrogen can also be used in carbon recycling — one method being by producing renewable methanol from carbon dioxide and hydrogen, which can be used as a more sustainable fuel and chemical than other alternatives.

Prime Minister Fumio Kishida has said the government is eager to accelerate the establishment of international hydrogen supply chains by collaborating with Australia and Middle Eastern and other Asian countries.

Japan established the hydrogen strategy in 2017 ahead of many other countries and is revising it following the development of hydrogen policy strategies by European nations and the United States.