Biplab Das 
Japan and the European Union (EU) have announced a strategic partnership to boost the demand and supply of clean hydrogen, signalling a major step towards a sustainable energy future. This collaboration aims to enhance technological advancements and infrastructure development necessary for the widespread adoption of hydrogen as a cleaner alternative to fossil fuels.
Hydrogen is viewed as a vital component in achieving carbon neutrality. Japan considers hydrogen a promising substitute for liquefied natural gas (LNG), a significant part of its strategy to become carbon neutral by 2050. For Europe, hydrogen presents a viable option to reduce dependence on Russian fossil fuels, especially in the wake of geopolitical tensions.
Ken Saito, Japan’s Minister of Economy, Trade and Industry, and Kadri Simson, European Commissioner for Energy, highlighted the importance of this partnership during a recent meeting. “Hydrogen will soon become an internationally traded commodity. Close EU-Japan cooperation is crucial for promoting renewable and low-carbon hydrogen globally and ensuring standards and regulations align,” Simson said.
Japan-EU hydrogen business forum
The meeting between Saito and Simson also included a Japan-EU hydrogen business forum, attended by executives from major corporations like JERA, Tokyo Gas, Mitsui, and Iwatani. This forum provided a platform to discuss the potential and challenges of hydrogen adoption, focusing on creating a robust supply chain and market demand.
The EU has set ambitious targets, aiming to produce and import 10 million metric tons of renewable hydrogen by 2030. This goal aligns with the bloc’s broader strategy to cut carbon emissions and transition to greener energy sources. However, achieving these targets requires significant investments in infrastructure and technological innovations.
Strategic investments and legislative support
Recent legislative actions underscore the commitment of both regions to the hydrogen agenda. Last week, Germany approved a bill to fast-track the construction of hydrogen infrastructure, import, and production facilities. This move is part of Germany’s broader efforts to reduce emissions and transition away from Russian gas.
Japan, on its part, has pledged to invest 3 trillion yen ($19 billion) over the next 15 years to subsidise the production of clean hydrogen. This substantial financial commitment aims to accelerate the development of a domestic hydrogen economy, fostering innovations and building a competitive edge in the global market.
Infrastructure development
A critical factor for the success of hydrogen adoption is the development of robust infrastructure. This includes establishing production facilities, storage capabilities, and distribution networks. Both Japan and the EU recognise that without these foundational elements, the widespread use of hydrogen cannot be realised.
Itochu Corporation, a leading Japanese trading house, announced a feasibility study for building a hydrogen and ammonia supply chain in Kitakyushu, southern Japan. This region is envisioned as a future offshore wind hub, aligning with Japan’s broader renewable energy goals. Such initiatives are crucial for creating a sustainable hydrogen economy, providing the necessary supply chain infrastructure to support industrial and domestic use.
Economic and environmental benefits
Hydrogen offers numerous benefits, both economically and environmentally. For Europe, hydrogen helps diversify energy sources, reducing reliance on Russian fossil fuels and enhancing energy security. Simson emphasised, “Hydrogen is a priority for European energy policy. It helps us eliminate remaining Russian fossil fuels and decarbonise our industry in the long term.”
Japan sees hydrogen as an opportunity to revitalise its energy sector, reduce greenhouse gas emissions, and foster economic growth through technological innovations and new market opportunities. The collaborative efforts with the EU are expected to create synergies that benefit both regions, driving global standards and fostering a competitive market for clean hydrogen.
Challenges and future outlook
Despite the optimism, significant challenges remain. The high costs associated with hydrogen production, storage, and distribution need to be addressed. Additionally, aligning regulatory frameworks and standards between regions is essential for creating a seamless global hydrogen market.
However, the joint commitment of Japan and the EU to advance clean hydrogen technologies and infrastructure investments provides a strong foundation for overcoming these hurdles. As both regions continue to innovate and invest, the vision of a hydrogen-powered future becomes increasingly attainable.
The Japan-EU partnership on clean hydrogen marks a pivotal moment in the global energy transition. By working together, these regions aim to establish hydrogen as a key player in achieving carbon neutrality and energy security. The success of this initiative will depend on continued investments, technological advancements, and the creation of a supportive regulatory environment. As the world moves towards a greener future, the collaboration between Japan and the EU stands as a beacon of hope and progress.
