The Japanese government announced on Tuesday its intention to invest 15 trillion yen ($107.5 billion) over the next 15 years in the production of hydrogen, as part of its efforts to transition to a low-carbon economy. This move comes as countries worldwide compete to develop hydrogen as a means of reducing emissions in industries that are challenging to decarbonize, such as steel production and chemical manufacturing, and to address environmental concerns in the energy sector.
In 2017, Japan introduced its Basic Hydrogen Strategy, and it has now revised its target to increase hydrogen supply to 12 million tonnes annually by 2040. The previous plan aimed to reach 3 million tonnes per year by 2030, up from the current 2 million tonnes. By 2050, Japan aims to achieve approximately 20 million tonnes of hydrogen production, coinciding with its projected estimation that the global hydrogen market will generate $2.5 trillion in annual revenue.
Of the 15 trillion yen investment, the government plans to contribute 6-8 trillion yen, with the remaining funds coming from the private sector, according to the industry ministry. Additionally, the plan aims to support Japanese companies in playing a central role in supplying the necessary electrolysers for hydrogen production from water. By the end of this decade, the target is for Japanese-affiliated companies, both domestically and abroad, to possess a total electrolyser capacity of 15 gigawatts, a significant increase from the current capacity of less than 1 GW.
Source: Reuters