In the UK, Fuel Cells Works reported that Japan’s Ministry of Economy, Trade and Industry (METI) has approved the first two recipients under its $20 billion hydrogen Contracts for Difference (CfD) program, offering delivery-based subsidies to kick-start domestic low-carbon hydrogen production.
The scheme, part of the Hydrogen Society Promotion Act and Green Transformation (GX) initiative, has been designed to close the cost gap between fossil-based and clean hydrogen fuels over multi-year contracts, providing certainty to early investors, according to the report.
The first winning project will see Toyota Tsusho, Eurus Energy, Iwatani, and Aichi Steel collaborate to produce 1,600 tons of green hydrogen annually via onshore wind-powered electrolysis. The hydrogen will directly support low-emission steelmaking operations at Aichi Steel. The second project, led by Resonac and Nippon Shokubai, will gasify waste textiles and plastics at Resonac’s Kawasaki site to supply hydrogen feedstock for ammonia production.
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