(Bloomberg) -- Japan may open applications for funding from a 3 trillion yen ($20.4 billion) program to stimulate the use of hydrogen as a fuel this summer, and select projects by year-end.
The government would subsidize specific forms of hydrogen production, including a plan to cover the price difference with natural gas, according to a proposal compiled by a panel within the trade ministry.
Japan created the world’s first hydrogen strategy plan back in 2017, and updated it last June, as it seeks to increase consumption to 3 million tons a year by 2030, 12 million tons by 2040 and 20 million tons by 2050 in an effort to decarbonize its economy. Hydrogen can be free of greenhouse gases if made using renewable energy.
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The program would be partly funded using proceeds from a newly created sovereign transition bond, which will be issued from next month. The government said in December that it would spend about 3 trillion yen over the next 15 years to cover price differentials with fossil fuels.
