Japan backs hydrogen mobility with major fuel subsidies

Japan backs hydrogen mobility with major fuel subsidies

Japan is accelerating its hydrogen mobility efforts with a new subsidy program aimed at fuel cell vehicles (FCVs) for commercial transportation. 

According to reports from the Nikkei, the Ministry of Economy, Trade and Industry (METI) will soon unveil a list of six priority areas for fuel cell truck and bus expansion: Tokyo, Kanagawa, Fukushima, Aichi, Hyogo, and Fukuoka prefectures. These zones were selected based on market demand and strong potential for regional government collaboration.

Unlike earlier programs that focused primarily on vehicle purchase incentives and station construction, the new strategy will subsidize the cost of hydrogen at around 90 fueling stations in the selected areas.

The government will cover up to 75% of the price gap between hydrogen and diesel, estimated at ¥700 per kilogram (approximately $4.83). For heavy-duty fuel cell trucks, this could mean savings of roughly ¥21,000 ( $144) per refueling session.

Currently, Japan has about 160 commercial hydrogen vehicles on its roads. To reach national decarbonization targets, the government estimates this number must climb to over 17,000 by 2030.

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