Japan may open applications for funding from a 3 trillion yen ($20.4 billion) programme to stimulate the use of hydrogen as a fuel this summer, and select projects by year-end.
The government would subsidise specific forms of hydrogen production. This includes a plan to cover the price difference with natural gas, according to a proposal compiled by a panel within the trade ministry.
Japan created the world’s first hydrogen strategy plan back in 2017, and updated it last June. It seeks to increase consumption to 3 million tonnes a year by 2030, 12 million tonnes by 2040 and 20 million tonnes by 2050 in an effort to decarbonise its economy.
Hydrogen can be free of greenhouse gases if made using renewable energy.
The programme would be partly funded using proceeds from a newly created sovereign transition bond, which will be issued from next month.
The government said in December that it would spend about 3 trillion yen over the next 15 years to cover price differentials with fossil fuels.
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