The Diet, Japan’s parliament, on Friday enacted a bill to promote the use of hydrogen energy for a carbon-free society, according to local news reports.
Under the law, the country will establish a contracts for difference system to narrow price gaps between hydrogen and existing fossil fuels.
The CfD scheme will award subsidies for domestic and foreign-produced hydrogen and derivatives.
A separate bill to promote the introduction of carbon capture and storage was also enacted.
The Japanese government has set a goal of expanding hydrogen supplies to about 12 million tons in 2040.
