Japan to invest $113bn in hydrogen economy by 2040

Mitsubishi Heavy Industry’s image of its hydrogen gas turbine
Japan plans to increase its use of hydrogen from 2 million tonnes a year to 12 million by 2040, The Japan Times reports.

The policy envisages $113bn of investment from the public and private sectors over the next 15 years.

Prime Minister Fumio Kishida told a cabinet meeting yesterday that the plan would be enshrined in the country’s hydrogen strategy by the end of next month.

A new type of government bond, called “GX bonds”, denoting green transformation, will help raise the cash.

“It is necessary to use GX bonds and prompt investment from the private sector to promote decarbonisation in Japan,” Kishida said.

Japan expects to issue GX bonds worth some $150bn from October.

The policy will involve building supply chains to provide more hydrogen in collaboration with Australia, as well as Middle Eastern and other Asian countries.

Last month, Japan announced the launch of a hydrogen supply chain with Australia.

It will also use hydrogen for electricity generation and vehicle fuel cells. Mitsubishi Heavy Industries has been a world leader in the development of gas turbines for use in hydrogen-fuelled power stations.

The increased use of hydrogen is an element in Japan’s plan to achieve net zero for greenhouse gas emissions by 2050.

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