Japan Ambitious $107 Billion Plan to Harness Hydrogen: A Green Revolution in Sight

TOKYO: The government of Japan has announced an ambitious plan to increase the annual supply of Hydrogen by six times its present level, reaching 12 million tons by 2040. To support this initiative, the government has pledged to allocate 15 trillion yen ($107 billion) in funding from private and public sources over the next 15 years to help foster Hydrogen-related supply chains.

Japan's decarbonization strategy aims to shift towards renewable energy, but it currently relies on "clean coal," Hydrogen, and nuclear energy to act as a bridge for the transition. Russia's ongoing conflict with Ukraine has caused energy security concerns and further complicated Japan's efforts. On the other hand, several developed Western countries are advocating for a more accelerated embrace of renewable energy options such as solar, wind, and geothermal power. Currently, Japan primarily produces Hydrogen using fossil fuels, which experts argue cater to the interests of fossil-fuel dependent industries and big businesses that hold influence over government policies.

Japan's updated plan focuses on nine significant areas, with an emphasis on developing water electrolysis equipment, fuel storage batteries, and large tankers for Hydrogen transportation. In a cabinet meeting on Tuesday, Chief Cabinet Secretary Hirokazu Matsuno lauded the Hydrogen industry's potential to achieve decarbonization, guarantee stable energy supply and drive economic growth simultaneously. The government aims to promote both the demand and supply of Hydrogen on a large scale through this comprehensive plan.

Despite Japan's leadership's vision of transforming the country into a "Hydrogen society," the Hydrogen industry is still in its early stages. The government is currently developing legislation to support the establishment of critical infrastructure and supply chains for the commercial use of pure Hydrogen and ammonia as another source of Hydrogen. During a recent Hydrogen council meeting with industrial leaders, Prime Minister Fumio Kishida affirmed Japan's ambition to create an "Asian zero-emission community" by leveraging Japanese technological know-how in Hydrogen, ammonia, and other decarbonization technologies.

Encouraging long-term investment in large-scale hydrogen infrastructure is crucial, emphasized Prime Minister Kishida, who highlighted the significance of setting an ambitious goal for Hydrogen supply and demand. Aim is to promote the development of a large-scale Hydrogen supply and demand by making our plans more predictable through an ambitious goal, said Kishida.

Additionally, the Cabinet approved an annual energy report, highlighting that economic sanctions against Russia have intensified long-term competition for liquefied natural gas, leading to possible shortages until 2025. Due to European demand for LNG as an alternative to Russian natural gas increasing the price of LNG, it is critical to devise a long-term strategy to ensure stable energy supplies.

In February, Japan implemented a "green transformation" plan aimed at promoting next-generation solar batteries, offshore wind power, and renewed use of nuclear energy. However, some experts argue that strategies like commercializing Hydrogen and Ammonia primarily serve the interests of large businesses and major industries that have significant investments in fossil fuel-based technologies and hold sway over government policies.