Tokyo Electric Power Co. Holdings (TEPCO), a leading Japanese energy company, is making significant strides in renewable energy. The company is partnering with Indonesian state-run oil company Pertamina to produce hydrogen using geothermal power in eastern Indonesia. The project, set to commence as early as 2027, involves installing hydrogen production equipment at a geothermal power plant. This initiative capitalizes on the growing demand for low-emission energy sources.
Japan’s Revised Hydrogen Strategy Drives Industry Investments
TEPCO’s initiative aligns with Japan’s recently announced plan to revise its hydrogen strategy. The country aims to increase the annual hydrogen supply to 12 million tonnes by 2040. This target comes in response to intensifying competition in the global hydrogen market. Substantial investments from the United States and Europe are driving this competition.
Japanese Prime Minister Fumio Kishida emphasizes the importance of developing hydrogen supply chains. He also stresses the need for enhancing domestic regulations to achieve these ambitious goals. By 2030, Japan aims to increase its hydrogen supply to approximately 3 million tonnes. This is up from the current 2 million tonnes primarily used by oil refiners. The long-term vision is to expand this figure to 20 million tonnes by 2050. Hydrogen and ammonia play crucial roles in Japan’s goal to achieve carbon neutrality.
Green Hydrogen: A Promising Alternative to Fossil Fuels
Hydrogen is gaining traction as an alternative to fossil fuels, particularly in various industries. Energy, steel, and chemicals sectors are actively seeking ways to reduce their carbon footprints. Green hydrogen offers a promising solution with several key advantages:
- Zero emissions: Green hydrogen is produced through renewable electricity via electrolysis, resulting in no carbon emissions.
- Versatility: Hydrogen can be used in a wide range of applications, from powering homes to fueling transportation.
- Scalability: As renewable energy sources continue to grow, the potential for green hydrogen production increases.
- Energy storage: Hydrogen can be stored and transported, allowing for the decoupling of energy production and consumption.
Japanese Companies Invest in Global Hydrogen Production
In addition to TEPCO ‘s partnership with Pertamina, other Japanese companies are investing in global hydrogen production. Major Japanese construction firm Obayashi is venturing into the hydrogen market with plans to produce hydrogen in New Zealand. These efforts demonstrate the growing interest and investment by Japanese companies in the global hydrogen supply chain.
Japan’s Long-Term Hydrogen Investment Plan
To support the development of hydrogen as a clean energy source, Japan has a long-term investment plan. The country plans to invest $113 billion over the next 15 years to promote hydrogen development. This significant financial commitment underscores Japan’s dedication to achieving carbon neutrality. It also highlights the country’s aim to secure its position as a leader in the global hydrogen market.
As Japan continues to invest in hydrogen production and forge international partnerships, it paves the way for a cleaner future. The collaboration between TEPCO and Pertamina in Indonesia serves as a prime example of innovative projects. These projects drive the transition towards low-emission energy sources.