Tokyo Embarks on Green Hydrogen Initiative

The bustling metropolis of Tokyo is gearing up to make significant strides in the realm of green hydrogen projects focused on sustainability and renewable energy.

The Tokyo metropolitan government unveils enterprising strategies to kickstart its green hydrogen ventures on publicly owned lands, leaping towards a cleaner and greener fortune for the city.

Construction of Green Hydrogen Units

For the financial year 2024, from April 2024 to March 2025, the Tokyo city government commences the construction of three green hydrogen units.

These units on Tokyo’s waterfronts are cornerstones of Japan’s green hydrogen infrastructure powering renewable energy and fuel.

These units produce hydrogen through electrolysis for Truck-Fuel Generation. Withal, details of the electrolysers, funding mechanisms, renewable energy procurement, and hydrogen utilisation are not yet thoroughly revealed.

Hydrogen Exchange Scheme

To incentivise the adoption of renewable hydrogen, Tokyo Governor Yuriko Koike has greenlit a hydrogen exchange scheme.

Operating with Contracts for Difference (CfD), this initiative bridges the gap between the market price of conventional grey or by-product hydrogen and the dividend associated with renewable hydrogen.

Expenditures were recorded and finalised on an auction approach, with the trial slated to commence for the financial year 2024. Despite the announcement, details on the budget allotment and contract period remain undisclosed.

Stimulating Hydrogen Usage

Governor Koike envisions hydrogen as a universal and essential component of Tokyo’s energy landscape. Enabling stable transactions and strengthening hydrogen utilisation aims for Japan to accelerate the transition towards a hydrogen-based society.

The programme resonates with initiatives proposed by Japan’s central government, aligning with the expansive national agenda of promoting low-cost and low-carbon hydrogen fuel.

Focus on Green Hydrogen

Notably, Tokyo’s green hydrogen programme distinguishes itself by its emphasis on renewable sources of hydrogen production.

Japan’s central government has outlined plans enclosing various forms of low-carbon hydrogen, including blue hydrogen derived from fossil gas coupled with carbon capture and storage.

Tokyo’s initiative remains steadfast in its commitment to low-cost green hydrogen as the primary truck fuel by 2026.

Hydrogen Fuel Subsidies

Satisfying Japan’s Green Hydrogen Aspirations, Tokyo’s 2024 budget allocates funds for a new hydrogen fuel subsidy attuned to hydrogen-powered truck operators.

The allocated subsidy is ¥2 million (approximately $14,000) for small trucks and ¥9 million ($60,000) for large trucks annually.

This initiative is to incentivise the adoption of hydrogen fuel for standard transportation. Yet, clarifications regarding the allocated amount pertain to individual truck subsidies or the total budgetary allocation await.

Byline: Vidhathri Matety