Japan has set ambitious goals for a carbon-neutral future, leading the charge towards an economically feasible hydrogen-based society. The country has established a comprehensive national strategy, embracing various initiatives such as the development of a global green hydrogen plant, the launch of the world’s first liquid hydrogen carrier ship, the design of government support policies, and the establishment of international partnerships, all aimed at realising its 2050 vision.

In alignment with the global consensus on tackling climate change and achieving carbon neutrality, governments worldwide are actively devising innovative policies and solutions to explore alternatives and expedite the transition to clean energy sources.

Japan stands as no exception in its pursuit of a robust energy security strategy. Contrary to expectations, the country’s energy self-sufficiency rate was relatively low, at approximately 20.3% in 2010. The Great East Japan Earthquake in 2011 further decreased this rate to just 6%. Despite rigorous government endeavours over the years, the rate showed limited progress, reaching 11.8% in 2018, without further improvement.

The challenge grew more complex as Japan accelerated its emissions reduction targets from 26% to 46% by 2030. The government recognised that hydrogen holds the key to future energy solutions, as projected by the World Hydrogen Council, which estimates the gas’s ability to cater to 18% of global energy demand by 2050.

Japan’s primary goal is to develop hydrogen production schemes from renewable sources, often referred to as “green hydrogen.” This entails creating the necessary infrastructure, offering legislative frameworks, and extending financial support to industries contributing to hydrogen and ammonia supply chains.

Beyond power generation and transportation, the government is leveraging its technological edge to pioneer new industries that utilise hydrogen. In 2017, Japan finalised the “Basic Hydrogen Strategy,” a three-phase programme for a step-by-step transition to a hydrogen-based society.

The strategy is set to include policies that facilitate government coordination for the production and utilisation of carbon-free hydrogen with a focus on cost-effectiveness. Additionally, it aims to address technological hurdles to establish hydrogen as a genuine counterpart to conventional energy sources.

For instance, in a significant step towards green hydrogen production, Japan inaugurated one of the world’s largest hydrogen plants in 2020. Located near the site of the Fukushima nuclear disaster, this facility was built over a two-year period and is powered by a system of solar panels installed around its perimeter, generating 20 megawatts of energy. This energy is used to produce an impressive 1,200 cubic metres of green hydrogen every hour. The flexibility to use or store this hydrogen helps manage variations in supply and demand.

During the development of the hydrogen plant, the Japanese government launched the “Suiso Frontier,” the world’s first vessel designed for transporting liquid hydrogen, in partnership with the Australian government. The project is a component of the “Hydrogen Supply Chain” initiative, which boasts a substantial value of AU$500 million.

Furthermore, these two countries joined forces to generate hydrogen from brown coal. Japan’s government earmarked more than $1.6 billion from the Green Innovation Fund for a project that transforms the coal found in Victoria’s Latrobe Valley into gas, thereby triggering a chemical reaction between the resulting compounds and water, leading to the production of hydrogen. Although this approach might not achieve absolute emissions neutrality, its centralisation of production will help control pollution.

In line with their shared pursuit of clean energy development, Japan and the United States established a similar partnership. This same goal also motivated nine Japanese companies to come together and establish the Japan Hydrogen Association. The primary mission of this association is to foster international collaborations, establish robust hydrogen supply chains, and provide recommendations on government policies.

Chief among these policies was one drafted by the Ministry of Economy, Trade and Industry in late 2022. This policy can be described as an interim plan to establish a supply chain by 2030. Under this framework, the government is set to offer financial aid to bridge the cost gap between hydrogen and ammonia, on one side, and fossil fuels on the other. This initiative is projected to span 15 years and entail a government expenditure of around $52 billion.

Japan is intensifying its efforts to ingrain hydrogen as a dependable energy source within the local culture. This commitment is evident from Toyota’s launch of the world’s first hydrogen- fuelled car to the fleet of hydrogen-powered buses traversing Tokyo’s streets daily. Even the Olympics flame was lit using hydrogen during the global event, with vehicles transporting athletes and technical teams relying exclusively on this fuel source.

Despite these efforts, there have been criticisms and calls to expedite efforts to reduce carbon emissions and produce green hydrogen. The Japanese government, as customary, is responding by redoubling its efforts to build trust with a public concerned about the energy and climate crisis.

The government is also dealing with global challenges related to production and supply chains that could impede its vision. Regardless of how much it supports local hydrogen adoption, it cannot isolate itself from an international community that may not share the same momentum, especially given the associated high costs. For instance, hydrogen fuel cell vehicles are considerably more expensive than alternative options, including electric vehicles.

Even within Japan, the number of hydrogen refuelling stations remains limited, though they boast rapid refuelling times of under 5 minutes, outperforming the one-hour recharge time of electric vehicles.

Japan’s ambitions extend beyond climate concerns; the country aims to position itself as a formidable competitor in the clean energy market. This is confirmed by reports from the International Energy Agency and the European Patent Office, which indicate that Japan is on par with the European Union in hydrogen-related patents and innovations.

Furthermore, the combination of government support policies and international partnerships is poised to foster an environment conducive to competition, fostering the development of global value chains, and ultimately transforming hydrogen into a practical choice that yields economic advantages while ushering in a cleaner energy future.

References:

• https://hydrogencouncil.com/en/invest-in-hydrogen-for-a-robust-resilient-and-sustainable-growth-as-a-response-to-the-covid-19-pandemic/  
• https://www.trade.gov/market-intelligence/japan-focuses-hydrogen-key-renewable-energy-source  
• https://energynews.biz/worlds-largest-green-hydrogen-plant-is-located-in-fukushima/  
• https://www.nature.com/articles/d42473-020-00546-6#:~:text=Billed%20as%20the%20’Hydrogen%20Olympics,electricity%20at%20the%20athletes%20village 
• https://policy.asiapacificenergy.org/node/3698#:~:text=The%20Basic%20Hydrogen%20Strategy%20seeks,expansion%20of%20hydrogen%20use%20(from 
• https://www.hydrogeninsight.com/policy/a-complete-failure-japans-fantasy-hydrogen-strategy-does-nothing-for-decarbonisation-study/2-1-1326788  
• https://www.hydrogenenergysupplychain.com/wp-content/uploads/2021/07/0312_002b.pdf  
• https://www.iea.org/news/hydrogen-patents-indicate-shift-towards-clean-technologies-such-as-electrolysis-according-to-new-joint-study-by-iea-and-epo 
• https://www.weforum.org/agenda/2023/03/hydrogen-innovation-patents-technology/  
• https://www.whitehouse.gov/wp-content/uploads/2021/04/FACT-SHEET-U.S.-Japan-Competitiveness-and-Resilience-CoRe-Partnership.pdf  
• https://www.reuters.com/business/energy/japanese-govt-awards-162-bln-japan-australia-hydrogen-energy-supply-jv-2023-03-07/#:~:text=The%20220%20billion%20yen%20fund,of%20225%2C000%20tonnes%20per%20annum. 
• https://thediplomat.com/2023/01/japan-looks-to-promote-a-hydrogen-society/