Japan refines strategy to accelerate energy transition

Japan is accelerating its energy transition process with a detailed roadmap for decarbonising key identified sectors, including car manufacturing, shipping, ammonia fuel and hydrogen, in line with the country's commitment to decarbonisation by 2050.

Premier Yoshihide Suga's government yesterday drafted a revised "green growth strategy", following a series of discussions at each responsible ministry with related industry representatives. The government originally unveiled the growth strategy in December last year as part of an action plan for 2050 carbon neutrality.

The revised draft aims for an acceleration of the country's shift to electric vehicles (EVs) for commercial use or the use of carbon-neutral fuels, such as synthetic fuels. The government has set a target for new commercial vehicles that are smaller than 8t by weight to be fully electrified or powered by carbon-neutral fuels after 2040. It is planning to set a 2040 goal by 2030 for the decarbonisation of larger commercial vehicles based on technology development, while targeting to deploy 5,000 EV trucks of 8t capacity or larger by 2030. Japan has already pledged to ban the sales of new gasoline-only cars and shift to passenger EVs by 2035.

The government is also seeking to boost charging infrastructure for EVs and fuel cell EVs, targeting to make driving such EVs as convenient as gasoline-powered cars by 2030 at the latest. It plans to complete installing 150,000 electric charging stations and 1,000 hydrogen refuelling stations across the country by 2030. Japan currently has around 30,000 EV charging stations and 150 hydrogen fuelling stations.

The trade and industry ministry earlier drafted a roadmap for development of carbon-neutral synthetic fuels, or e-fuels, to be produced from hydrogen and carbon dioxide recycled from power plants and manufacturing plants. The roadmap includes a 2040 target for commercialising synthetic fuel output after establishing efficient mass-production technology by 2030. Japanese refiners are also prompted to tap into production and supply of carbon-neutral fuels, taking advantage of their extensive infrastructure and distribution network, as well as long-established ties with national oil firms and overseas partners.

The revised growth strategy also calls for speeding up switch to hydrogen and ammonia for fuel use. Tokyo is to allocate part of a ¥2 trillion ($18.2bn) government fund to back innovation to development of hydrogen and ammonia technologies.

The government is seeking to deploy its first-generation zero-emissions vessel earlier than the previously targeted 2028. Tokyo is targeting to start a demonstration project of ammonia-fuelled vessels by 2025 and bring forward commercialisation of ammonia-fuelled vessels as early as possible.

It is planning to provide support for Japanese firms that are investing overseas in developing hydrogen and ammonia export and supply infrastructure in the anticipation of growing demand in Japan. It will assist efforts by key domestic ports to set up as carbon-neutral ports.

The revised green growth strategy is expected to be approved by Suga's cabinet later this month. Japan has stepped up efforts to decarbonise since Suga's pledge for a 46pc cut in 2030 greenhouse gas (GHG) emissions against 2013 levels compared with 26pc previously. Japan's GHG emissions fell to their lowest level on record during the April 2019-March 2020 fiscal year, down by 14pc from the 2013-14 base year, following global trade conflicts and an economic slowdown.

By Rieko Suda