Japan aims to integrate low-carbon hydrogen into its energy mix, driven by decarbonization goals, energy security and industrial competitiveness. However, high costs and limited access to resources needed for blue and green hydrogen challenge domestic production. To address these issues, Japan became the first nation to publish a hydrogen strategy in 2017, aiming to develop hydrogen supply chains through global investments and partnerships in production, transportation and infrastructure (Figure 1). To further accelerate its hydrogen adoption and tackle cost barriers, in October Japan enacted the Hydrogen Society Promotion Act, which earmarks $20 billion in funding for Contracts for Difference incentives and to bolster local hydrogen demand.
Japanese companies have partnered in more than 40 clean hydrogen projects around the world, with hot spots in North America, Europe, Australia, Southeast Asia and the Middle East. This approach includes subsidiaries for rapid scaling, non-subsidiaries for flexible and niche opportunities, and joint ventures to leverage shared expertise and infrastructure. Japan’s strategy aims to diversify and manage risk by prioritizing asset quality, regional incentives and funding, as well as transportation logistics.
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