Both projects are recognised as low-carbon hydrogen supply business plans and are set to receive subsidies under the Hydrogen Society Promotion Act.

The first project, led by Toyota Tsusho, Eurus Energy, Iwatani, and Aichi Steel, is expected to produce 1,600 tonnes of green hydrogen per year. Electrolysis powered by onshore wind will be used to support Aichi’s special steel manufacturing.

Meanwhile, the second Resonac-Nippon Shokubai partnership will gasify waste plastics and textiles at Resonac’s Kawasaki plant to produce hydrogen for feedstock in low-carbon ammonia production.

A 30–40MW natural gas and hydrogen-fuelled unit will also be installed to cut the site’s emissions by up to 254,000 tonnes of CO2 and cover around 40% of the plant’s power consumption. The project is scheduled to be operational in Q1 2030.

The second project is scheduled to be operational in Q1 2030.

METI is preparing to roll out CfDs for low-emission ammonia imports under its Green Transformation (GX) scheme. Of this, a significant amount has been earmarked for hydrogen and ammonia investments.

CfDs have been designed on a project-by-project basis, similar to the H2Global market-making approach. These contracts are expected to guarantee delivery-based subsidies over multi-year deals, encouraging international supply chains.

The mechanism is designed to give early investors price certainty; the approach could help first-mover projects reach final investment decisions and prove commercial viability.

Larger-scale import projects are still under review by METI and are expected to be announced at a later date, likely under a new administration, which could influence the scale and structure of Japan’s CfD programme.