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Eiji Ohira

New Energy and Industrial Technology Development Organization (NEDO)

Hydrogen Perspective in Japan

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Establishment:　October 1, 1980

Number of employee: 1,525 (as of April 2024)

Budget: JPY 182.8 billion (EUR 1.1 billion) in 2024

+ R&DD fund (JPY 9.0 trillion)

Fuel Cell and Hydrogen Technology Office

- Number of staff: 38

- Budget: JPY 22.3 billion (EUR 140 million) + R&DD fund (JPY 370 billion)

Introduction: Outline of NEDO

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Japan’s

Update

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Background: Japan’s CO₂ Emission

Japan's National Greenhouse Gas Emissions in Fiscal Year 2021(MOE)

CO₂ Emissions in JFY2021:

1,064 million tons

19.2% reduction from 2013

(253.5 million tons reduction)

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Supply & Demand volume:

Current（Approx. 2Mt）　→　2030（Approx. 3Mt） →　2040 (Approx. 12Mt) →　2050（Approx. 20Mt）

Hydrogen cost (@Port)

2030（JPY30/Nm3）　→　2050（Less than JPY20/Nm3）

Historically Japan started hydrogen/fuel cells R&D back in 1973 (before the oil shock started).
The first country to have formulated a national hydrogen strategy (2017).
The Prime Minister set “2050 carbon neutral” declaration (2020). $15bn Green Innovation Fund.
Positioned hydrogen as one of the priority areas in the Green Growth Strategy.
Key part of achieving green transformation economy plan (2023).

Milestones

Targets (Set in the Basic Hydrogen Strategy on Dec. 26, 2017 – updated in 2023)

2017

Basic Hydrogen Strategy

2020

PM's 2050 CN Declaration Green Growth Strategy

2021

-Green Innovation Fund

-Revised Strategic Energy Plan

2023

-GX Promotion Act

-Basic Hydrogen Strategy updated

2014

Hydrogen and Fuel Cell Strategy RM

Japan's Policy Moves

Japan’s Hydrogen Policy Moves

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Japan’s Hydrogen Policy Updates

Revision of Basic Hydrogen Strategy (6 June 2023)
Setting new targets

- H₂ introduction: 12million tons (2040)/ Electrolysis: 15GW(2030, worldwide)

Promoting transition to “low-carbon hydrogen”
Strengthening industrial competitiveness

- Prioritizing nine strategic areas

(Electrolysis, Hydrogen Supply Chain, Fuel Cells, Power Generation, etc.)

Hydrogen Society Promotion Law (17 May 2024)
METI will formulate a basic policy for promoting the supply and utilize of low-carbon hydrogen and its derivatives.
Establishment of a plan certification scheme

- Businesses who would like to produce / import and utilize clean hydrogen and its derivatives will submit their plan to METI.

- METI will certify the plan based on the criteria.

Measures for certified businesses

- Subsidy for price gap, constriction of common infrastructure

- Special measures for regulation

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https://www.hydrogeninsight.com/policy/japan-to-provide-15-year-subsidies-for-locally-produced-and-imported-hydrogen-after-parliament-passes-h2-law/2-1-1646040

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The Japanese parliament has today passed the Hydrogen Society Promotion Act, paving the way for the country to provide 15-year subsidies for locally produced and imported low-carbon H2.

The new law actually provides no details about the forthcoming support, merely stating that the Ministry of Economy, Trade and Industry’s (METI’s) Agency for Natural Resources and Energy shall provide subsidies to certified suppliers of any type of “low-carbon hydrogen” (see panel below for definition).

However, Prime Minister Fumio Kishida has previously pledged \3trn ($19.24bn) of government to support the roll-out of clean hydrogen under the Act, which will take the form of a Contracts for Difference-style subsidy.

Producers will receive a “strike price” that represents the cost difference between the cost of low-carbon hydrogen and ammonia with the cost of liquefied natural gas and coal, respectively. This seems to be a nod to plans by Japanese energy companies to blend hydrogen with natural gas, and ammonia with coal at existing power plants.

These subsidies ? which would be individually set for each specific project ? would be paid to producers for 15 years, as long as supply begins before 2030, but they also have to commit to continue supplying clean H2 for a further ten years after the 15-year support period ends.

According to Tatsuya Terazawa, CEO of Japan’s Institute of Energy Economics, which has close ties to METI, international developers can simultaneously make use of both the Japanese subsidies and production subsidies in their own countries, such as the 45V production tax credits in the US and Australia’s new Hydrogen Production Tax Incentive.

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Direction: How to promote Hydrogen

Goals

Cost ($/kg):　$3/kg by 2030　& less than $2/kg by 2050

	Short Term (- 2025) Approx. 2 million tons	Mid Term (- 2030) Max. 3 million tons	Long Term (- 2050) 20 million tons
Existing source (ex. By products)	Maximize utilization as major source	Decarbonization of hydrogen production (with CCUS)
Import	Accumulation of knowledge and cost reduction through demonstration project	Development of large-scale international hydrogen supply chain	Further scale up through diversification of hydrogen source
New domestic source	Accumulation of knowledge and cost reduction through demonstration project	Start up hydrogen production by electrolysis using excess energy from renewables	Scale up hydrogen production by electrolysis, and realizing innovative hydrogen production technology

Supply

Transportation	Expansion to FC trucks in addition to FCVs and FC buses	Launch of ships (FC ships, etc.) to the market	Use of hydrogen and synthetic fuel for aviation
Power generation	Using of stationary fuel cell and small gas turbine for distributed energy	Commercialization of large-scale hydrogen power generation turbine	Further scale up and function as balancing power
Industry (raw material)	Conducting technology demonstration project (refinery, steel process, chemical process, etc.)		Realizing hydrogen steel process, green chemical, etc.
Thermal (Industry, business, household)	Substitute fossil fuels through installation of fuel cell and decarbonization of supply infrastructure using electrolysis and existing gas pipes		Expanding supply through infrastructure development and hydrogen cost reduction

Demand

Source: METI

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This figure shows the direction of hydrogen efforts.　The target is to reduce the cost of hydrogen.

We will proceed with efforts to expand the amount of hydrogen used in the future.

The hydrogen supply will make the best use of current domestic resources.

From 2030, we will also utilize hydrogen from overseas and domestic renewable energy hydrogen.

For this reason, we will proceed with technological development and scale up.

On the usage side, we will first expand fuel cell mobility. From automobiles, we will promote the use in ships in 2030 and in aircraft in 2050.

In terms of electric power, hydrogen power generation will start in 2030. In the industrial field, we aim to put it into practical use by 2050. We will also promote the introduction of decentralized cogeneration.

In any case, technological development is important. Especially in the NEXT 10 years, we will actively invest in technological development in order to gain a lot of knowledge.

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Current status

Items		Japan‘s Target� (in 2030)	Current status
Stationary Fuel Cell
	Regidential Fuel Cell (EneFarm)	3 million	503,276(Dec. 2023)
Mobility
	Passenger Vehicles	800,000	7,944 (Nov. 2023)
	Fuel Cell Buses	1,200	149(Dec. 2023)
	Light Commercial Vehicle	N/A	97 (Dec. 2023)
Hydrogen Refueling Station
	Public Stations	1,000	174 (Dec. 2023)

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Brand New Hydrogen Mobility

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Hydrogen x Motor Sports

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Stationary Fuel Cell Development

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Hydrogen Town

HARUMI FLAG: Redevelopment of the former Olympic Village site

Bus Base

H₂ Supply

PEMFC

H2 Pipeline

Fuel Cell

Panasonic

5kW x 6 = 30kW/Unit

Total: 4units

Toshiba

100kW x 1

Panasonic ENE-FARM

0.7kW x 4,145 units(natural gas based)

[For Private]

[For Public Area]

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NEDO’s R&DD Project

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NEDO’s Strategy: Comprehensive approach

Fundamental / Applied Research

Field test / Demonstration

Regulation, code and standard

/ Certification

Public Outreach

Intl. Collaboration

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Program and Budget of FCHT Office in 2024

Program	Budget in 2024	Outline
Fuel Cell and Electrolysis	JPY 7.8 Billion	- Novel Materials (Catalysts, Membrane, etc.) - Reaction Mechanism Analysis Technology - Evaluation Technology on FC/EL - Hydrogen Storage for Mobility - New Fuel Cell Application
Hydrogen Supply Chain	JPY 8.6 Billion	- Equipment(s) Scaling-up - Cost Reduction of Hydrogen Refueling Station - Material Reliability Evaluation - Technical and safety standards (Electrolysis, Pipeline, etc.)
Regional Hydrogen Model	JPY 5.9 Billion	- Feasibility Study / Demonstration on Local Hydrogen Utilization Model
Commercial Scale Demonstration	JPY 370 Billion (For 10 years; 2021-2030)	- International Hydrogen Transport (LH2, OCH) - Hydrogen Power Generation (Gas Turbine) - Power to X

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Truck Demonstration

https://www.yamato-hd.co.jp/news/2023/newsrelease_20230517_1.html

https://www.minpo.jp/news/moredetail/20230530107628

http://www.enagia.co.jp/info/2023/03/post-41.html

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JARI/HySUT

Developing new refueling protocol

80 kg-H₂ / 10 min

Ref. Passenger Vehicle: 5 kg-H₂ / 3 min

Refueling test facility for HDV

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Non-road Fuel Cell Application

Photo: Mitsui E&S Machinary

Image: Iwatani Corporation

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Hydrogen@Port

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10MW Alkaline

1.5MW PEM

MW scale Electrolysis

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Power to Chemical

Photo and Image: JGC

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Multi Module Test（0.8ＭＷ×1～4 unit(s)

Image: Asahi Kasei

Single Stack Test@FH2R (10MW)

Alkaline Electrolysis: Scaling-up

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Power to Heat

Image: Yamanashi Prefectural Government

EL System

Total: 16MW

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Hydrogen for Industrial Process

Photo and Image: Sumitomo Rubber Industries

Photo and Image: DENSO

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Hydrogen Import

Image: Kawasaki-city

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Hydrogen Gas Turbine

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International Demonstration Projects

US: (FS)

Power to Gas

(Commercial Building, Mobility)

Thailand:(FC)

FC-Bus, Track, Forklift

India:(FS)

Power to Gas

(Automobile Industry)

Germany:

Hydrogen Gas Turbine

Germany:(FS)

Alkaline Electrolysis

Indonesia: (FS)

Power to Gas

(Ammonia Production)

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Hydrogen is key technology for carbon neutral

- Japan has been strongly promoting hydrogen

Just started market penetration

- need to enhance application, improve technology

Our goal: Developing low-carbon energy system

- scaling-up / integration with other energy system

- gaining a lot of knowledge through testing in real environments

Conclusion

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Thank you!

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