In 2017 Japan introduced the so called ‘Basic Hydrogen Strategy’, infrastructural programs that aims to expand the hydrogen cell technology. In 2019 Fuji Keizai company estimated, that this strategy alone will lead to the major expansion of the hydrogen market in Japan. It’s supposed to grow 56 times and amount to 408.5 billion yen to 2030. A special subgroup is the hydrogen fuel stations which will be worth more than 27 billion yen.
Basic Hydrogen Strategy aims to expand the annual production to the 300 thousand tons. It focuses on the liquid hydrogen and its role in the global supply chains and creating more emission-free ammonia till 2030.
Former Prime Minister Shinzo Abe has highlighted, that Japan needs to reduce the costs of the production to meet the requirements of the Strategy. In 2050 the production is estimated to be 90% cheaper which will make the hydrogen a cheaper alternative to gas. The cost of the energy produced from hydrogen was supposed to be 17 yen/kWh, but it was revised in 2019 to 13 yen/kWh.
Japanese government is supporting all hydrogen production, not only the so called green hydrogen. In 2018 95% of the hydrogen produced all around the globe was tied to the combustion processes. As Japan is striving to reduce the costs and quickly expand the production, it’s also supporting the initiatives based on the so called grey hydrogen. An example of the projects like that is the export program by Kawasaki Heavy Industries to Victoria in Australia planned on the 2020/2021. The production of the green and blue hydrogen on a larger scale is scheduled before 2030.