On Friday 17 May 2024, the Hydrogen Society Promotion Act and
the CCS Business Act were passed in the Parliament of Japan.
As discussed in our previous publication, the Hydrogen Society Promotion
Act addresses the higher cost associated with producing, importing
and supplying hydrogen when compared to fossil fuels. Under the
Act, the Japanese government will accept applications for support,
providing subsidies to help close the price gap between hydrogen
and the existing fossil fuels.1 For more details, while
we have to wait for subordinated regulations to be provided by
METI, subsidies will be granted to selected projects for, in
principle, 15 years, provided production commences prior to 2030.
This aims to promote the use of hydrogen and its derivatives as
alternatives to fossil fuels.
