From the AFRAlthough there is hope for a greener future, without decarbonising the hardest-to-abate sectors, we cannot achieve carbon neutrality. To achieve this, hydrogen will be crucial. Hydrogen, together with its derivative ammonia, will be key to decarbonising thermal power generation. For this reason, there is a strong global interest in these burgeoning energy sources.
But, the transition to hydrogen/ammonia is not easy. The biggest challenge is its high cost. This is why Japan has announced its plan to introduce legislation, the Hydrogen Promotion Act, to provide a framework to offset the cost differential between hydrogen and conventional energies for 15 years through supported projects.
The first liquefied hydrogen shipped to Japan was exported from Victoria. It was produced from the state’s abundant brown coal. AFR
The Japanese government has also announced a plan to allocate 3 trillion yen, about $30 billion, to promote hydrogen. Japan is committed to developing the initial market with strong policy support. This framework will be applicable to both domestically produced hydrogen and imported hydrogen. It will also support hydrogen production using renewable energies and hydrogen produced from fossil fuels, alongside carbon capture and storage.
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