While progress on low-carbon hydrogen stutters in many regions of the world, China and Japan continue to see momentum and have taken leading roles in the production and use of clean-burning molecules. The two Asian economic giants are pouring public funds and industrial resources into technologies and policies supporting hydrogen’s development, which both countries see as essential to decarbonizing their respective industrial bases. China is excelling in the development of green hydrogen, in particular, made using electrolyzers powered by renewable energy. But while the region’s industries progress, numerous logistical and financial challenges remain. Hydrogen development in China and Japan looks very different between the two countries, and the respective approaches reflect each country’s energy realities. China’s emphasis is on scaling up domestic production to absorb surplus renewable power and boost local industry, while Japan’s is on securing overseas supply and derisking investment through subsidies. Governments in both countries have identified clean hydrogen as a strategic priority. China is the latest to formally do so — Beijing says it aims to leverage hydrogen’s advantage as a “new economic growth engine” and last month announced that it will support 20% of total investment in green hydrogen-derived methanol and sustainable aviation fuel projects. Japan, meanwhile, is focusing on creating a market framework to support its long-term hydrogen vision. Tokyo’s updated Basic Hydrogen Strategy is one of the world’s most ambitious, targeting 12 million tons of hydrogen and ammonia use annually by 2040. To support it, Japan’s government has launched a 3 trillion yen ($20 billion) contract-for-difference (CFD) program to guarantee price stability for low-carbon hydrogen producers over 15 years.
AloJapan.com