Comparison of National Hydrogen Strategies in Japan and Germany

Abstract

Japan and Germany, two world leaders of hydrogen development, recently adopted national hydrogen strategies. Japan highlights hydrogen as an energy carrier for clean and stable import of energy, while Germany for the conversion of excessive renewable electricity to heat use in industry sector. Germany also takes active approach to launch hydrogen market by stimulating both demand and supply of hydrogen. It is an advantage of Germany who can make use of carbon pricing to boost the cost competitiveness of hydrogen. Japan should consider taking proactive approach to generate the demand of hydrogen if it wants to maintain its advantage in hydrogen development. Currently cost competitiveness of hydrogen is far behind fossil fuels. In order to overcome this, the environmental value of hydrogen should be evaluated properly and taken into account in the choice of energy mix.