Japan plans to increase hydrogen supply by sixfold over next 17 years

Prime Minister Fumio Kishida’s government will aim to generate $113B in investment over next 15 years to increase hydrogen current level to around 12M tons by 2040

Japan is planning to increase hydrogen supply by sixfold over the next 17 years in order to spur the use of renewable energy, local media said on Tuesday.

Prime Minister Fumio Kishida’s government will aim to generate 15 trillion yen (about $113 billion) in investment over the next 15 years to increase the hydrogen current level to around 12 million tons by 2040, Kyodo News reported.

The plan was discussed at a meeting chaired by Kishida and attended by the relevant ministers.

“It is necessary to utilize GX bonds and prompt investment from the private sector to promote decarbonization in Japan,” Kishida was quoted as saying by the news agency, referring to a new category of sovereign debt that will be issued for the first time during the fiscal year beginning in April.

Tokyo is aiming for net zero greenhouse gas emissions by 2050, which means hydrogen is viewed as a key driver in its plan to bring about a green transition, also known as “GX,” an initiative to transform a fossil fuel-based economy into one centered on cleaner energy, it added.

Government is likely to issue GX bonds worth 20 trillion yen (about $150.583) this year. While the government has already promised to encourage the widespread use of vehicles that use hydrogen fuel cells.