A National Transformation
As the quest for sustainable and clean fuels accelerates worldwide, Japan has resolved to make a considerable contribution by putting its faith in hydrogen to decarbonize its crucial industrial sectors. On Tuesday, the Japanese government unveiled a plan to supply over $107 billion in hydrogen investments over the next decade and a half. This financial backing is projected to come from both the public and private sectors.
This strategy is a revamp of Japan’s Basic Hydrogen Strategy, initially issued in 2017. The updated objective is to boost hydrogen supplies from today’s 2 million tons to approximately 12 million tons by 2040 – a sixfold increase. “We aim to steadily build a supply chain for hydrogen in Asia and the Indo-Pacific region by further expanding Japan’s world-leading hydrogen technology,” affirmed Yasutoshi Nishimura, Minister of Economy, Trade and Industry.
A Sustainable Future
By setting ambitious goals, the government aspires to persuade companies to engage more actively in hydrogen initiatives and commercialize the fuel by 2030. While Japan intends to use hydrogen to address its energy demand, the fuel surpluses could benefit other significant industries looking to make the cleaner energy shift.
The revised hydrogen strategy emphasizes nine strategic areas, including the innovation of water electrolysis equipment, fuel storage batteries, and the construction of large-sized tankers for hydrogen transportation. In addition, the government aims to increase the introduction of synthetic fuels and ammonia using hydrogen.
Shipping Industry’s Green Transition
Japan’s transition to a hydrogen-based economy is perfectly timed, as energy-intensive industries like shipping are on the verge of a sustainable revolution. There is a growing sentiment within the shipping industry that ammonia could become the most favored clean fuel. The Japanese shipbuilding sector has pinned its profitability goals on building zero-emission vessels.
At present, the container shipping sector is investing in methanol-ready boxships, with over 80 ships on order for Maersk, CMA CGM, and COSCO. However, Imabari and Mitsui Shipbuilding are already spearheading projects for ammonia-powered vessels, and the government is supporting research into ammonia-propelled engines. As technical hurdles are overcome, experts believe the shipping industry can be persuaded to transition to ammonia and hydrogen energy alternatives.
Closing the Production Gap
The adoption of cleaner fuels is reliant on large-scale production, which is currently absent. The government-led financial backing is a welcome boon to address this shortfall and forms part of the effort to encourage the shipping and other major industries to embrace alternative fuel sources.
