Commercial supply chain and hydrogen strategy roadmap for Asia Pacific - Japan

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Japan will develop  commercial scale supply chains by around 2030 to procure 300,000 tonnes of hydrogen annually and ensure that the cost of hydrogen reaches 30 yen/Nm3
In July 2021, Japan released the first draft of new 6th Strategic Energy Plan. To achieve 46 percent GHG reduction target by JFY (Japan Fiscal Year) 2030, ANRE (Agency of Natural Resources and Energy) proposes to reduce the total primary energy generation to approximately 430 billion litres crude oil equivalent (COE) by JFY 2030 from the JFY 2030 target of 489 billion litres COE in the 5th Strategic Energy Plan. ANRE expects this reduction to occur through decreased demand due to improved  energy solutions and energy conservation. Several other key changes in JFY 2030 targets from the 5th SEP to the draft 6 th SEP include -

(i) increase in the use of renewables;

(ii) reduction in reliance on petroleum and coal; and

(iii) addition of hydrogen and ammonia to the list of energy sources.

A. Realizing low-cost hydrogen use –
Japan will develop commercial scale supply chains by around 2030 to procure 300,000 tons of hydrogen annually & ensure that the cost reaches 0.26 USD /NM3. In the later future , Japan will try to lower the hydrogen cost to 0.17 USD/NM3  to allow hydrogen to have the same cost competitiveness as traditional energy sources.
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