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The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters.
Produced by Reuters Plus for
Disclaimer: The Reuters news staff had no role in the production of this content. It was created by Reuters Plus, the brand marketing studio of Reuters. To work with Reuters Plus, contact us here.
With a solid technology foundation and strong public–private alignment, Japan is advancing toward viable commercialization of hydrogen at scale.
Driving the hydrogen society forward
Amid rising geopolitical and economic uncertainties worldwide, hydrogen is increasingly seen not merely as a pathway to carbon neutrality, but as a strategic pillar for enhancing national resilience and energy security.
Hydrogen reacts with oxygen to generate electricity and heat, producing only water as a byproduct without emitting carbon dioxide or other pollutants. Although fossil fuels still dominate the global energy mix, hydrogen-related technologies are progressing through stages of research, demonstration and early deployment in various countries as part of broader efforts to diversify energy sources and reduce environmental impact.
Building momentum
Against this backdrop, Japan has been accelerating initiatives to bring hydrogen into viable, large-scale practical use, drawing on decades of technological development and policy support to advance its application across multiple sectors. Under the 2.75-trillion-yen (US$173 billion) Green Innovation Fund, the government plans to allocate 1 trillion yen (US$6.3 billion) to the development of hydrogen-related technologies. Recent official estimates suggest that combined public and private investment in building hydrogen supply chains will surpass ¥15 trillion (US$96.3 billion) over 15 years. The government has set a target of introducing up to 3 million metric tons of hydrogen per year by 2030, when hydrogen and ammonia—used as a hydrogen carrier—are expected to account for roughly 1% of the country’s power generation mix.
“Japan’s strength in hydrogen is rooted in early strategic foresight, which continues to shape the country’s technological progress today,” says Tatsuoki Kono, professor at the Research Center for Advanced Science and Technology, the University of Tokyo, and a leading figure for next-generation hydrogen research and development.
Spurred by the 1973 oil crisis, Japan began exploring alternatives to imported fossil fuels and investing in hydrogen technologies. By the early 1990s, the country had already articulated an industrial vision of a “hydrogen society,” which was followed by the world’s first national hydrogen strategy in 2017. Coupled with the country’s traditional strength in materials science, this long-standing commitment has led to pioneering achievements, from the commercialization of hydrogen fuel-cell vehicles to the broader adoption of hydrogen across transportation and power generation.
According to a joint analysis by the International Energy Agency and the European Patent Office, Japan accounted for approximately 24 % of all international patent families (IPFs) filed in hydrogen technologies from 2011 to 2020, making it the leading country, followed by the US with 20% and Germany with 11%.
Opening new possibilities
Building on its priorities of safety, energy security and economic efficiency, Kono notes that Japan is at the forefront of developing technologies for “green” hydrogen production using renewable energy. As solar power generation expands rapidly worldwide, research into balancing power and the utilization of surplus electricity is advancing to ensure grid power stability. Japan aims to raise the share of renewables in its power mix from 23% in 2023 to 40–50% by 2040, creating both opportunities and challenges in balancing variable power generation.
The demonstration project completed in 2025 shows a world-first, revolutionary solution with support from Japan’s Ministry of the Environment. Led by Marubeni, one of Japan’s major trading houses, the project produced green hydrogen using surplus solar power in Australia and transported it to Indonesia, where it was used to generate and provide green electricity at an industrial park.
Enhancing global presence
Kawasaki Heavy Industries, a global pioneer in the hydrogen industry, also acknowledges that cost remains the biggest hurdle to introducing hydrogen energy at scale. “Making this clean energy source economically viable will require the simultaneous creation of large-scale supply and demand,” says Masakazu Fujita, senior manager of Hydrogen Strategy Division at Kawasaki.
To address this issue, the company is developing a wide range of technologies across the entire hydrogen supply chain in collaboration with the government and other partners, with the aim of completing demonstration projects and moving toward commercialization by fiscal 2030.
– Zuquan He, Manager of Hydrogen & Fuel Ammonia, Business Development Section, Marubeni.
“With strong government support and widespread public interest in hydrogen, Japan has assumed a leading role, with Japanese companies driving technological development”
Find out more about Japan’s initiatives here
The project employed key technologies developed by Kono, including a hydrogen storage alloy that allows green hydrogen to be safely absorbed and released at high density, offering greater safety and space efficiency than conventional high-pressure gas cylinders.
Traditionally, this technology has been used in stationary hydrogen gas storage, and rechargeable battery named Nickel-Hydride battery for hybrid vehicles powered by gas and electricity. “Transport has been one of the major challenges in hydrogen utilization. By demonstrating the first cross-border transport of hydrogen using metal hydrides, we paved the way for promising future applications,” says Zuquan He, manager of Hydrogen & Fuel Ammonia Business Development Section at Marubeni.
Kawasaki is also strengthening its international leadership through initiatives such as a recent strategic partnership signed between five companies from Japan and Germany—Kawasaki, Toyota Motor, Kansai Electric Power, Hamburger Hafen und Logistik and Daimler Truck—bringing together hydrogen demands of both countries to build a highly cost-efficient supply chain.
“Achieving carbon neutrality is a shared challenge across all sectors, from industry to residents,” says Fujita, who emphasizes Japan’s expected role in building the hydrogen supply chain and shaping global standards. “These efforts could help cement the country’s leadership in hydrogen-based society.”
– Masakazu Fujita, Senior Manager, Hydrogen Strategy Division at Kawasaki
“Achieving carbon neutrality is a shared challenge across all sectors, from industry to residents.”
– Professor Tatsuoki Kono, The Research Center for Advanced Science and Technology, The University of Tokyo
“Japan’s strength in hydrogen is rooted in early strategic foresight, which continues to shape the country’s technological progress today”
Furthermore, green hydrogen produced by this facility was supplied to a natural gas-fired power plant adjacent to the facility, and in September 2025, Australia's first co-firing test was successfully conducted.
“With strong government support and widespread public interest in hydrogen, Japan has assumed a leading role, with Japanese companies driving technological development,” He says. The company aims to achieve profitability from its hydrogen business by 2030.
“Looking ahead, it may be beneficial for Japan to help develop efficient supply chains—for example, those supporting the shipment of hydrogen produced Australia to countries across Southeast Asia,” Kono adds. “Such approaches could reduce the risks associated with long-distance transportation to Japan, with potential mutual benefits.”
The greatest achievement of this project is the Electricity - Hydrogen Management System developed jointly with Kono, which predicts electricity prices and CO2 intensity based on weather forecasts and optimises input power.
As a result, inexpensive green electricity can be allocated to hydrogen production via batteries and electrolysis. This revolutionary technology has succeeded in producing green hydrogen at a price close to zero yen, for the first time. This is the world's first demonstration of a solution to the most important issue in green hydrogen utilization: cost reduction.
Green hydrogen production and energy storage facility in SA
After successfully demonstrating the world’s first maritime transportation of liquefied hydrogen aboard the Suiso Frontier in 2022, Kawasaki is currently developing larger, commercial-scale carriers under the Green Innovation Fund. In parallel, construction of a large terminal is underway in Kanagawa Prefecture, which will house one of the world’s largest above-ground, flat-bottom cylindrical tanks for commercial-scale liquefied hydrogen.
Memorandum of Understanding for cooperation to develop a Japan-Germany hydrogen supply chain
Kawasaki LH2 Terminal (the world’s first commercial-scale liquefied hydrogen base in Kanagawa prefecture）
40,000 m³ liquefied hydrogen carrier
