Japan has made an unprecedented commitment to hydrogen power as an alternative energy source, investing US$19.2 billion in the technology in new funding alone. As first out of the starting blocks, Japan has staked its claim as the world leader in the industry. However, at this critical juncture, there still exists a golden window of opportunity for the UK to become a serious hydrogen player. We await the Government’s release of the much-anticipated UK hydrogen strategy which we hope will draw on the strengths of the Japanese hydrogen plan and improve upon it for a British context.
Japan is pursuing hydrogen across the board, from international supply networks and hydrogen storage and transport, to experimenting with different energy sources needed to create hydrogen. The government subsidises 135 hydrogen refuelling stations around Japan, more than anywhere else in the world, and is providing new hydrogen funding and tax incentives for targeted capital spending. It is also supporting the construction of a 10-megawatt hydrogen production plant in Fukushima, and it hopes to make hydrogen a central theme of the Olympic Games in Tokyo. It is working collaboratively with international partners to promote a global hydrogen trade, convening an annual Ministerial meeting. Throughout their hydrogen plan - the world’s first - Japan sets targets of 2030 and 2050 to reach hydrogen goals that reduce the cost to parity with conventional energy, creating a carbon-free hydrogen society.
The Japanese private sector is playing a huge role, too, with Toyota unveiling the world’s first mass-produced hydrogen car as long as seven years ago – they are now producing subsequent iterations. Nippon Steel and other steelmakers plan to use hydrogen instead of coal by 2050, and Iwatani is seeking to commercialise large hydrogen ships by 2025. Excitingly, companies such as Toshiba possess technology to store hydrogen from renewable energy sources, and Kawasaki is aiming to be the only global company able to form an entire hydrogen supply chain.
It is clear that Japan’s hydrogen strategy is bold and far-reaching. So, what must the UK do to match Japan’s efforts and become the pre-eminent hydrogen world power? I am clear that there are some simple policies which must be implemented as soon as possible in order to steal a march on the competition. The UK Government must introduce mechanisms by which hydrogen vehicles are incentivised, along with a similar incentive for each kilogram of hydrogen sold. This can be achieved quickly through the liberalisation of the Renewable Transport Fuel Obligation, which has recently gone out for public consultation. Looking further, we hope the hydrogen strategy will enable the development of a more refined scheme, such as potentially contracts for difference.
The UK Government must also support hydrogen trains; back the mass deployment of hydrogen buses, which will kick-start investment in UK-made buses as well as stimulate hydrogen production; and act to modernise the Bus Service Operators Grant to favour zero emission fuels over and above fossil fuels. We must double down on our leadership in the field of hydrogen aviation, and we should back net zero construction such as the hydrogen-powered construction of Sizewell C. Combined, all of these policies have the ability to accelerate progress to net zero, stimulate private investment, and create jobs across the Union, all with minimal taxpayer spend.
It is vital that we do not allow the race for hydrogen supremacy to be lost, as regrettably we did with batteries and wind turbines. We are currently at an advantage with our domestic hydrogen expertise and technology, but we must act fast. Japan has ensured that it has cornered a section of the future hydrogen market, and we must do the same. In this new post-Brexit UK with levelling up and net zero at its heart, we must go full throttle and take our place as a hydrogen superpower.
Japan has made an unprecedented commitment to hydrogen power as an alternative energy source, investing US$19.2 billion in the technology in new funding alone. As first out of the starting blocks, Japan has staked its claim as the world leader in the industry. However, at this critical juncture, there still exists a golden window of opportunity for the UK to become a serious hydrogen player. We await the Government’s release of the much-anticipated UK hydrogen strategy which we hope will draw on the strengths of the Japanese hydrogen plan and improve upon it for a British context.
Japan is pursuing hydrogen across the board, from international supply networks and hydrogen storage and transport, to experimenting with different energy sources needed to create hydrogen. The government subsidises 135 hydrogen refuelling stations around Japan, more than anywhere else in the world, and is providing new hydrogen funding and tax incentives for targeted capital spending. It is also supporting the construction of a 10-megawatt hydrogen production plant in Fukushima, and it hopes to make hydrogen a central theme of the Olympic Games in Tokyo. It is working collaboratively with international partners to promote a global hydrogen trade, convening an annual Ministerial meeting. Throughout their hydrogen plan - the world’s first - Japan sets targets of 2030 and 2050 to reach hydrogen goals that reduce the cost to parity with conventional energy, creating a carbon-free hydrogen society.
The Japanese private sector is playing a huge role, too, with Toyota unveiling the world’s first mass-produced hydrogen car as long as seven years ago – they are now producing subsequent iterations. Nippon Steel and other steelmakers plan to use hydrogen instead of coal by 2050, and Iwatani is seeking to commercialise large hydrogen ships by 2025. Excitingly, companies such as Toshiba possess technology to store hydrogen from renewable energy sources, and Kawasaki is aiming to be the only global company able to form an entire hydrogen supply chain.
It is clear that Japan’s hydrogen strategy is bold and far-reaching. So, what must the UK do to match Japan’s efforts and become the pre-eminent hydrogen world power? I am clear that there are some simple policies which must be implemented as soon as possible in order to steal a march on the competition. The UK Government must introduce mechanisms by which hydrogen vehicles are incentivised, along with a similar incentive for each kilogram of hydrogen sold. This can be achieved quickly through the liberalisation of the Renewable Transport Fuel Obligation, which has recently gone out for public consultation. Looking further, we hope the hydrogen strategy will enable the development of a more refined scheme, such as potentially contracts for difference.
The UK Government must also support hydrogen trains; back the mass deployment of hydrogen buses, which will kick-start investment in UK-made buses as well as stimulate hydrogen production; and act to modernise the Bus Service Operators Grant to favour zero emission fuels over and above fossil fuels. We must double down on our leadership in the field of hydrogen aviation, and we should back net zero construction such as the hydrogen-powered construction of Sizewell C. Combined, all of these policies have the ability to accelerate progress to net zero, stimulate private investment, and create jobs across the Union, all with minimal taxpayer spend.
It is vital that we do not allow the race for hydrogen supremacy to be lost, as regrettably we did with batteries and wind turbines. We are currently at an advantage with our domestic hydrogen expertise and technology, but we must act fast. Japan has ensured that it has cornered a section of the future hydrogen market, and we must do the same. In this new post-Brexit UK with levelling up and net zero at its heart, we must go full throttle and take our place as a hydrogen superpower.
