As it intensifies attempts to use the gas to transition to a low-carbon economy, Japan aims to invest 15 trillion yen ($107.5 billion) over the next 15 years to supply the nation with hydrogen.
Japan invests $107bn in hydrogen supply: Countries compete to develop hydrogen because it may be valuable in cleaning up the energy sector and might help reduce emissions in some of the hardest industries to decarbonize, like steel production and chemical manufacturing.
In a revised goal to increase hydrogen supply to 12 million tonnes annually by 2040, Japan unveiled its Basic Hydrogen Strategy in 2017 on Tuesday.
The original plan intended for Japan’s yearly hydrogen supply to increase from 2 million tonnes to 3 million tonnes by 2030.
Japan estimates the worldwide hydrogen market will produce $2.5 trillion in yearly revenue by 2050. Therefore it aims for about 20 million tonnes.
According to the industry ministry, the government intends to contribute 6 to 8 trillion yen of the 15 trillion yen, with the remaining 15 trillion yen coming from the private sector.
The strategy also aims to support Japanese businesses in their major position as suppliers of the electrolyzers required to create hydrogen from water.
By the end of this decade, it sets a goal for Japanese-affiliated enterprises to have a combined 15 GW of electrolyzer capacity, up from less than 1 GW.