Hydrogen And Ammonia Projects Waiting On METI Support

NRF Japan energy update – December 2023

The world continues to wait on the Japanese Ministry of Economy, Trade and Industry (METI) for the support the hydrogen/ammonia sector needs to kick-start the industry. Many projects we are working on are awaiting the announcements of the METI joint-subcommittees (including the Hydrogen and Ammonia Policy Subcommittee) and ultimately the new legislation which will need to be approved by the Japanese Parliament. We are carefully monitoring the updates.

In the draft interim report dated 6 December 2023 publicized by METI (found here - December Meti Report), greater detail was placed by the subcommittee on Contracts for Difference (CfDs) rather than a fixed payment system or tax credits. Global ammonia/hydrogen projects are awaiting the details of these subsidies so that the required project financing, and the bankability of such projects, can be properly considered/calculated.