The Japanese government has released details of the clean hydrogen subsidies under the Hydrogen Society Promotion Act, outlining three types of support available for applicants:
- Contract for Difference (CfD): Provides price support by covering the difference between the base price for clean hydrogen or ammonia and the reference price for traditional grey hydrogen or ammonia.
- Development Costs: Supports Front-End Engineering Design (FEED) and Engineering, Procurement, and Construction (EPC) costs for shared infrastructure projects, including port facilities and ammonia crackers, which are developed collaboratively by multiple end-users.
- Regulatory Procedures: Offers exemptions from certain permitting and notification requirements under relevant laws, such as the Port and Harbor Act, to streamline project development.
Notably, applicants seeking CfD or development cost support must apply as a consortium that includes both a supplier and an end-user. This approach is intended to foster a fully integrated value chain for clean hydrogen and ammonia within Japan.
The exact launch date for this support scheme is yet to be confirmed, but it represents a promising step toward accelerating Japan’s transition to a low-carbon economy.
