Japan aims for sixfold hydrogen supply increase by 2040

SINGAPORE (ICIS)–Japan will revise its basic hydrogen strategy by the end of May by increasing its production goal from 2m tonnes to 12m tonnes by 2040, according to the 3rd Ministerial Meeting on Renewable Energy and Hydrogen held on 4 April.

To reach this goal, Japan will consider setting aside 15 trillion yen (~$113 billion) in public and private sector investment to build the large-scale supply chains and industrial complexes required over the next 15 years, said Japanese Prime Minister Fumio Kishida on Tuesday.

Japan will formulate a strategy and targets, and it welcomes investments from both inside and outside Japan.

With the situation in Ukraine and the global energy crisis, the United States and Europe are promoting huge investments in hydrogen.

In addition to accelerating the concrete implementation of supply chain construction and industry development, Japan will domestically advance the development of a pioneering system that integrates regulation and support on hydrogen ahead of Asia.

Japan’s existing goal in its basic Hydrogen strategy in 2017 is to increase the national annual hydrogen supply to about 3m tonnes annually in 2030 from 2m tonnes now and reduce the cost of hydrogen to 30 yen per normal metre (around €2.30/kg).

Japan formulated the world’s first national hydrogen strategy in 2017.

It seeks to decarbonize its economy by leveraging hydrogen in transportation, industry, power production and other fields.

In October 2020, Japanese Prime Minister Yoshihide Suga declared that Japan would achieve carbon neutrality by 2050.

The 6th Strategic Energy plan formulated in 2021 states that Japan would aim to “achieve carbon neutrality through realizing hydrogen society” and that it would “revise the Basic Hydrogen Strategy in light of the role of hydrogen in the age of carbon neutrality.”

The 2017 Basic Hydrogen Strategy is considered as misguided, and the government needs to re-examine the hydrogen strategy according to the Japanese Renewable Energy Institute.

The institute pointed out that the original strategy was misguided in both terms of that it laid out “a vision of a hydrogen society where hydrogen is used in every sector” and how it is produced by not knowing hydrogen demand.

Moreover, it promotes the use of grey hydrogen (fossil fuel based) which will not contribute to emissions reductions.

Japan’s Ministry of Economy, Trade, and Industry (METI) has been forced to admit Japan is falling behind in development of electrolysers required for producing green hydrogen in the last five years compared to European countries, China and other nations.

HYDROGEN CARGO

Japan still led the world in developing long-distance hydrogen transportation technologies. It also collaborates closely with Australia on building hydrogen supply chain.

At the Australian and Japanese Leaders’ Meeting in January 2022, Prime Minister Kishida welcomed Prime Minister Morrison’s announcement to establish the $150 million Australian Clean Hydrogen Trade Program.

Under the partnership, a new initiative and a world-first shipment of liquid hydrogen will help develop Australia’s export hydrogen industry and establish the supply chain.

The first shipment of liquefied hydrogen in the world, Suiso Frontier transported the hydrogen from the Port of Hastings in Victoria, Australia to Kobe, Japan in January 2022, which is a key milestone in the hydrogen shipment.

Japanese energy company Eneos in January announced that it will test technology for hydrogen shipped by regular oil tankers at ambient temperature.

Eneos has built a demonstration plant in Australia to build methylcyclohexane (MCH), a liquid hydrogen carrier that was expected to start operations in February.