TOKYO — The Tokyo Metropolitan Government is doubling its budget for hydrogen-related initiatives from fiscal 2024, seeing them as key to combating climate change. While previously supporting fuel cell vehicle (FCV) purchases and the establishment of hydrogen fueling stations, the focus is shifting to promote the adoption of hydrogen fuel cell-powered commercial vehicles including large trucks. Will this be a catalyst for the widespread adoption of hydrogen?
Boosting commercial hydrogen
In February this year, the public-private “hydrogen mobility station study working group” held its inaugural meeting in Tokyo to address challenges related to hydrogen fuel cell proliferation. The meeting brought together around 40 companies and organizations including FCV manufacturers, hydrogen station operators and logistics companies. Major firms like Toyota Motor Corp. and energy giant Eneos Corp. accounted for a majority of the participants.
Addressing the attendees, Masahiko Sakamoto, director of metropolitan Tokyo’s Bureau of Industrial and Labor Affairs, stated, “We believe that hydrogen is the key to solving energy crises and combating climate change.” He expressed the metro government’s desire to accelerate the use of hydrogen-based energy within Tokyo by pushing for the uptake of commercial FCVs such as trucks and buses.
Sakamoto also pointed out the “chicken and egg” challenge faced by hydrogen backers around the world, wherein the lack of FCVs impedes hydrogen station development, while the scarcity of hydrogen stations hinders FCV adoption. He said the metro government will actively support to break this cycle.
Cost remains hurdle
FCVs are powered by fuel cells that generate electricity through the chemical reaction of hydrogen and oxygen. They produce zero carbon dioxide emissions and have a longer range than electric vehicles.
While hydrogen is abundant in nature and has garnered attention as a next-generation energy source, its logistic systems are not yet well established. The price of hydrogen remains high: around 100 yen (approx. 66 cents) per cubic meter, or some 12 times the cost of fossil fuels. Vehicle prices exceed 7 million yen (about $46,200) for domestically produced models, making them more expensive than gas-electric hybrids.
According to the Ministry of Economy, Trade and Industry, there were only 181 hydrogen stations across Japan as of May 2023, including those under construction. The number of FCVs in Japan stood at 7,755 as of April of the same year, lagging behind the over 80,000 electric vehicles sold in 2023.
Budget doubled to 20.3 billion yen
In its initial fiscal 2024 budget, the Tokyo metro government allocated 20.3 billion yen (around $134.1 million) for hydrogen-related projects, double the previous year’s amount. Of this, 4.2 billion yen (approx. $27.1 million) is earmarked for supporting the purchase of large hydrogen-powered trucks (with a cap of 56 million yen, or around $370,000, per vehicle) and fuel subsidies to bridge the price gap with diesel. Assistance will also be provided for the retrofitting of existing hydrogen stations to accommodate large commercial vehicles.
In 2014, the Tokyo government projected that passenger-type FCVs would lead hydrogen demand, aiming to introduce 6,000 FCVs and establish 35 hydrogen stations in Tokyo by 2020. However, as of 2023, only about 1,500 FCVs and 19 hydrogen stations were in operation.
Recognizing the slow adoption rate, especially in passenger cars, metro Tokyo has begun focusing on commercial vehicles. Subsidies for small trucks with fuel cells were introduced last year, and over 70 are now on Tokyo’s roads. By around 2030, the metro government is aiming to get that up to 3,500, plus 1,000 hydrogen-powered large trucks. It also has plans to have 50 hydrogen stations in place capable of servicing large vehicles, including the existing ones.
The official in charge of the metro government program told the Mainichi Shimbun, “The situation has changed since FCVs first came on the scene 10 years ago. The uptake of commercial (hydrogen powered) vehicles is rapid, and there’s a large market. The commercial sector will lead demand from here on out.”
But what do businesses make of all this?
A representative of Commercial Japan Partnership Technologies Corp., a commercial vehicle development company with investments from major Japanese automakers including Toyota Motor Corp., said, “Cost remains a challenge for hydrogen. Metro Tokyo’s support will provide a significant boost to adoption.” They added, “FCVs are still a developing technology. If commercial (hydrogen) vehicles become widespread, this technology can be transferred back to passenger vehicles, streamlining development and reducing costs.”
SOURCE: Mainich
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