Japan earmarks $107B to develop hydrogen energy supply chains

Over the next 15 years, Japan has committed to investing 15 trillion yen ($107 billion) in supply chains related to hydrogen.

The Japanese government revised the country's plans on Tuesday to increase the use of hydrogen as fuel as part of an effort to lower carbon emissions.

The ambitious target of the plan is a six-fold increase in annual supply from the current level to 12 million tons by 2040. 

In order to bridge its transition to renewable energy, Japan's decarbonization strategy focuses on using so-called clean coal, hydrogen, and nuclear energy. However, other developed Western nations are pushing for a quicker adoption of renewable energy sources like solar, wind, and geothermal, despite the fact that Russia's war on Ukraine has heightened concerns about energy security and complicated that effort.

Japan has so far relied primarily on hydrogen made from fossil fuels.

According to some experts, strategies like commercializing the use of ammonia and hydrogen primarily serve the needs of powerful industries and big business interests that are heavily invested in fossil fuel-based technologies and have influence over governmental policies.

Nine strategic areas are given priority in the revised plan, including the creation of water electrolysis machinery, fuel storage batteries, and large hydrogen transport tankers.

Although the hydrogen industry is still in its infancy, Japan's leaders claim they want to transform the nation into a "hydrogen society." The government is still working on legislation to support the development of the necessary infrastructure and supply networks for the commercial use of ammonia, another source of hydrogen.

Prime Minister Fumio Kishida stated that Japan hopes to create an "Asian zero-emission community," contributing Japanese technology in hydrogen, ammonia, and other decarbonization technologies, at a hydrogen council meeting with business leaders last week.