In late 2020, Japan announced a commitment to net zero emissions by 2050, which has since been written into law. As such, the country needs to urgently decarbonize not only its power sector but also its industrial base and various transport sectors.
While many European countries focus on renewable energy sources, Japan sees hydrogen and its related compounds (ammonia, MCH, methanol, etc.) and derivatives (synthetic methane, e-fuels, etc.) as a more complete set of solutions for its home market and also for developing Asian nations. Renewable energy (RE) will certainly expand in Japan and there are several new RE technologies that the country is working on. However, based on current policies and industrial strategy, hydrogen (H2) will play a more central role in Japan’s energy transition. This is due to H2’s flexibility in production and consumption, and the government’s belief that a renewables-only approach is not well-suited for its energy systems, geography, geology, international relations and exports / trade.
This short report provides a comprehensive overview of current trends and business opportunities on the Japanese hydrogen (and ammonia) market. It covers the country's hydrogen framework, end-use approach, and its focus on securing access to hydrogen feedstocks. The article also examines Japan's vision for hydrogen as a major way to decarbonize its economy while sustaining its industrial competitiveness.
This report was compiled with the support of "Japan NRG", a Tokyo-based platform that delivers information and analysis on energy and electricity markets in Japan. Using their broad network and research, they prepare independent intelligence on Japanese energy policies, markets, companies and R&D. Japan NRG is operated by K.K. Yuri Group.
