In this paper the authors estimated long-term hydrogen introduction scenarios in Japan up to 2050, using an integrated energy model which combines an econometric demand model and a bottom-up type technology introduction model, and assuming the introduction of “CO
2-free” imported hydrogen. In the cases that assume ambitious CO
2 emission reduction targets, and set realistic limits for Carbon Capture and Storage (CCS), a massive volume of hydrogen is introduced as a fuel for combined cycle power generation, reducing the marginal CO
2 abatement costs significantly.
In normal cases the use of CO
2-free hydrogen is less cost-effective than the introduction of CCS. It must be noted, however, that CO
2-free hydrogen can gain cost-effectiveness if imported fossil fuel prices become extremely high. In this perspective, the option of introducing CO
2-free hydrogen can be regarded as a measure to reduce the risk of price spikes and/or an alternative measure to reduce CO
2 emissions with the possible limited availability of the CCS technology.
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