International Government Hydrogen Updates: Japan, South Korea, Australia
Connor Dolan
The Pacific Ocean is surrounded by countries actively using hydrogen today, and Japan, South Korea and Australia are collectively committed to expanding hydrogen networks despite the distance between them. FCHEA has previously discussed each country’s governmental support for hydrogen and fuel cells, and today we will return. The past few years has seen the industry expand globally and early adopting countries like these three continue to support that growth.
Japan
Hydrogen has long been of critical interest to Japanese officials, due to Japan’s relative scarcity of energy resources. Over the past few years, the Japanese government has issued several strategy and roadmap documents outlining plans to build support for hydrogen across the country. The 2020 Tokyo Olympics (delayed to 2021) were a showcase to the usage of fuel cells in Japan and the country has continued to expand research and deployment efforts. Japan’s national research and development agency, NEDO (New Energy and Industrial Technology Development Organization), is leading efforts to fund that research, with $3.4 billion devoted to establishing large-scale hydrogen supply chains to generate green hydrogen domestically.
One key sector Japan is focused on is long-distance hydrogen shipping. Utilizing liquefied hydrogen directly, along with other shipping agents such as ammonia, Japan is exploring the best options for energy transportation from other countries. In January 2022, the country received the world’s first shipment of liquefied hydrogen, from Australia, opening a new chapter in the globalization of hydrogen networks. Japan has announced plans to partner with other countries, including building on previous work with Saudi Arabia and Brunei and potentially sourcing deliveries from the United States and elsewhere, to develop a growing hydrogen import market and expand its own technology development.
South Korea
Much like Japan, South Korea has relatively few domestic energy resources, leading government officials and private industry to encourage hydrogen and fuel cell technology development as part of the solution to decarbonize the country. In 2021, the Hydrogen Economy Promotion and Hydrogen Safety Management Law went into effect, which supports hydrogen-focused companies through a variety of loans, tax benefits, and research and development (R&D) support. This law is combined with other governmental support and the designation of the cities of Ulsan, Ansan, and Wanju as “hydrogen pilot cities” to substantially boost deployment of hydrogen across the country, particularly for use in transportation and industry.
South Korea has seen a rapid deployment of hydrogen stations and fuel cell electric vehicles (FCEVs) across the country in the past few years. FCHEA member Hyundai is actively developing FCEVs across a range of classes, with consumers purchasing large numbers of the NEXO SUV in South Korea and California, the XCIENT heavy-duty truck available commercially in several countries and buses and additional heavy-duty trucks deployed for test operations globally.
One nascent area that could significantly further expand hydrogen and fuel cell usage in South Korea is heavy industries. South Korea is a world leader in shipbuilding and steelmaking, among other sectors. In addition to implementing fuel cells and hydrogen for industrial processes, the shipbuilding industry is also looking to construct hydrogen-carrying vessels. FCHEA member Bloom Energy is developing fuel cell powered vessels in partnership with Samsung Heavy Industries, aiming to meet the decarbonization standards that the International Maritime Organization has set for the near future.
Australia
In contrast to Japan and South Korea, Australia has a wealth of natural resources suited to energy production, including the potential for domestic hydrogen production from solar and wind production. The government’s interest in hydrogen primarily focuses on growing job opportunities and economic investment, whether complementing or replacing extractive fossil fuels as a core part of Australia’s economy. The National Hydrogen Strategy plans to use the country’s experience with exporting fossil fuels as an advantage for the export of hydrogen, which has already been demonstrated, as mentioned above. The strategy aims to reach a “H2 for 2” goal that would achieve a price of hydrogen per kilogram under 2 Australian dollars.
The Australian government has primarily focused its funding support through public-private partnerships, investing in building production and distribution capacity. The range of potential sources for hydrogen production are wider in Australia than many countries, with the country strongly embracing the utilization of carbon capture and storage technologies in combination with incumbent fossil fuels. In 2021, the Australian Clean Hydrogen Hub Program was launched, which identified seven potential regions for hub development, as well as the recent announcement that BP had acquired a stake in a green hydrogen development in the state of Western Australia, highlighting investment and production potential around the country, as well as offering support for operators looking to expand operations in the country, such as FCHEA member Hyzon Motors, who opened an office in the country and aims to have a hydrogen refuelling depot operational in 2023.
Conclusion
As the usage of hydrogen and fuel cell technologies expand globally, countries that have long been investing in the sector, such as Japan, South Korea, and Australia, continue to stand at the forefront of implementation and deployment. All three have committed substantial resources to hydrogen already and look to expand their domestic sectors and relationships with each other and other global trade partners.