Address :
YamnaCo Ltd 27 Old Gloucester Street London WC1N 3AX, UNITED KINGDOM

The Role of Clean Hydrogen and Ammonia in Japan’s Power Sector Decarbonisation

Japan has committed to reducing the country’s emissions by 46% by 2030 relative to 2013 and reach net-zero emissions by 2050, and has put hydrogen and ammonia co-firing at the center of its strategy.
Power generation remains Japan’s largest source of emissions. This heavy reliance on thermal power plants is mainly explained by the new coal-fired power plants built in recent years following the suspension of nuclear power plants following the Fukushima accident, and the challenge of developing renewable energy at sufficient scale and pace to support the energy needs of the Japanese economy.
Japan has been putting emphasis on hydrogen & ammonia co-firing in recent years, viewing it as the most imminent way to decarbonise its grid while ensuring a baseload and dispatchable power supply.
Two support mechanisms have been implemented by the Japanese government to incentivise the use of low-carbon hydrogen and ammonia as power sources:

➔ CfD scheme: 15-year support for bridging the gap between clean hydrogen & ammonia and fossil fuels (coal, natural gas)

➔ Capacity Auction: 20-year fixed capacity payments to ensure a stable revenue source to eligible power producers

The funds earmarked for these two programs demonstrate Japan's ambitions to be a champion of low-carbon hydrogen and derivatives imports, with a target consumption of 3mtpa and 20mtpa by 2030 and 2050, enshrined in the country's 'Basic Hydrogen Strategy'.
Here’s our take at Yamna!

Here are some publications that may interest you

Norway: A prospective world leader for Green products export

With EU target to import 10 million tons of hydrogen by 2030, there arises the question of who is set…

Read more
The first EU Hydrogen Bank auction awarded € 720mn in subsidies last week

The first EU Hydrogen Bank auction awarded €720 million in subsidies last week to produce 1.58 million tons over the…

Read more
Green molecules or Green Electrons: Is producing green H2 and transporting via H2 pipelines across intercontinental distances (<5000 km) the best option?

Due to long distances between hydrogen production hubs (low-carbon energy resources) and demand centers (industrial hubs), there is an urgency…

Read more
The zero-emission shipping race

Between July and August 2023, net zero shipping has witnessed pivotal market updates such as MAN Energy Solutions has announced…

Read more
Oman, Morocco, Australia and Chile: Assessing the state readiness of potential H2 export hubs

Due to a rich renewable potential, the Middle east, North Africa, South America and Australia are touted to be big…

Read more
French Agency ADEME launches industrial decarbonization tender, with a dedicated role for green hydrogen

French Agency for Ecological Transition ADEME has published the DECARB IND+ tender for large-scale industrial decarbonation in France, notably through…

Read more