Japan's Power Market News 2024/W25

Japan to Apply Long-Awaited Hydrogen Promotion Law From This Summer

This summer, Japan’s Ministry of Economy, Trade, and Industry (METI) and the Agency for Natural Resources and Energy (ANRE) will begin enforcing the Hydrogen Society Promotion Law . This new legislation lays out essential "decision criteria" for #hydrogen and #ammonia supply businesses to foster a more sustainable and stable supply chain. ANRE has already presented a draft of these criteria, outlining the expectations and standards for the industry.

For situations where fossil fuels are used, businesses must manage #carbon emissions through carbon capture and storage (#CCS) initiatives. Additionally, the draft encourages companies to develop a supply chain that guarantees a stable supply of hydrogen and ammonia, while also striving to use facilities that reduce dependence on rare metals. The quality of "low-carbon hydrogen" must align with the standards set by the International Organization for Standardization (ISO) and other relevant regulations.

Compliance and Global Leadership in Hydrogen

Businesses that fail to meet these criteria may face recommendations and warnings; specifically, this applies to hydrogen suppliers with an annual supply volume of 1,000 tons or more, and ammonia suppliers with an annual supply volume of 100,000 tons or more. This enforcement ensures that significant players in the industry adhere to the new sustainability standards.

Japan aims to become a global leader in the hydrogen sector, so aligning with international standards such as ISO will be crucial to ensure local practices integrate with the wider market.

The new rules should enable the country to position itself at the forefront of the nascent global hydrogen industry.

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