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Japan Invests $1.11 Billion in Green Hydrogen Technology

Japan Invests $1.11 Billion in Green Hydrogen Technology

Anela DoksoBy Anela Dokso20/12/20242 Mins Read
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Japan is investing $1.11 billion in green hydrogen technology, which includes over $365 million in government funding aimed at developing gigawatt-scale electrolyser and fuel cell manufacturing capacities.

Toyota, a global leader in the automotive industry, has received a grant of approximately $73.5 million for a $225 million project aimed at developing 3 GW of electrolyser manufacturing capacity. This project also targets the production of 75,000 fuel cell systems annually for commercial trucks by 2030, focusing on markets in Europe and the United States.

The Ministry of Economy, Trade and Industry (METI) in Japan has announced subsidies for both Honda and Toyota to enhance their hydrogen fuel cell production capabilities. This move is intended to strengthen the domestic supply network and capture a larger share of the global market, particularly for commercial truck applications.

On December 18, METI disclosed plans to provide substantial subsidies to Honda and Toyota Motor Corporation as part of this initiative. The overall projected investment for expanding gigawatt-scale electrolyser and fuel cell manufacturing is approximately ¥170.8 billion (around $1.11 billion), with METI’s funding covering nearly a third of this amount.

Honda is set to receive ¥14.7 billion (approximately $95.8 million) while Toyota has been allocated ¥11.2 billion (around $73 million). Honda’s focus will extend beyond passenger cars to include commercial vehicles and stationary power sources for data centers, aiming to increase their fuel cell system sales to 2,000 units per year by the mid-2020s. Meanwhile, Toyota plans to significantly expand its operations, targeting the sale of 100,000 fuel cell systems annually by 2030, with a significant portion dedicated to commercial trucks in Europe and China.

With the hydrogen market expected to exceed ¥4 trillion (approximately $26 billion) by 2030, these government-backed investments are strategic moves aimed at bolstering Japan’s international competitiveness in the rapidly growing market for green hydrogen technology.

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