Japan's Energy Transition: New Laws Drive Hydrogen and CCS Businesses Forward
Key Ideas
  • Japanese parliament approved the Hydrogen Society Promotion Act and CCS Business Act reaffirming the country's commitment to energy transition.
  • The Hydrogen Society Promotion Act focuses on low-carbon hydrogen production, business plan approval, support mechanisms, and a code of conduct for suppliers.
  • Business plans aligned with the Act may receive subsidies and regulatory exemptions, with the Japan Organization for Metals and Energy Security overseeing subsidy grants.
  • Applications for subsidies under the Hydrogen Society Promotion Act are expected to start in the summer of 2024 to support the supply and use of low-carbon hydrogen.
On May 17, 2024, Japan's parliament passed two energy-related bills: the Hydrogen Society Promotion Act and the CCS Business Act, marking the country's first laws addressing hydrogen and carbon capture and storage. The Hydrogen Society Promotion Act aims to promote low-carbon hydrogen by establishing a basic policy, a business plan approval regime, support mechanisms like subsidies, and a code of conduct for hydrogen suppliers. The Act defines 'low-carbon hydrogen' based on emission levels and contribution to reducing CO2. The government, jointly with ministries, will develop a Basic Policy outlining objectives for low-carbon hydrogen use. Business plans meeting certain criteria aligned with this policy could receive subsidies and regulatory exemptions. The Japan Organization for Metals and Energy Security will oversee subsidy grants and common infrastructure development. Applications for subsidies are expected to open in summer 2024, supporting the supply and use of low-carbon hydrogen in Japan's energy transition.
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