Hydrogen demand in Japan's Chubu region to rise to 110,000 mt/year by 2030: report

Tokyo — Hydrogen demand in Japan's Chubu region is forecast to rise to 110,000 mt/year by 2030 from 40,000 mt/year in 2025 as a result of expected demand growth from the power generation and petroleum refining sectors, the Hydrogen Utilization Study Group in Chubu said in a report released Feb. 19.

The report follows the launch of the study group by leading energy companies and a major bank in March 2020 to consider the mass-scale utilization of hydrogen in the central Chubu region after Japan released its basic hydrogen strategy set in 2017.

Japan under its basic hydrogen strategy aims to procure 300,000 mt/year of hydrogen, amounting to 1 GW of power generation capacity, and reduce the cost of hydrogen to Yen 30/normal cubic meters by around 2030 by developing commercial-scale supply chains.

The study group found that potential hydrogen demand in Chubu was around 110,000 mt/year in 2030, accounting for roughly a third of the country's 2030 national target, should the hydrogen price be at parity to the cost of switching in various industrial sectors.

Chubu's hydrogen demand is estimated at 40,000 mt in 2025 following the start of development of the new energy source in the region.

Roughly 80% of its estimated 2030 hydrogen demand will come from the power, refining and petrochemical sectors, and the balance from hydrogen stations and fuel cells for home power generation, according to the report.

The Hydrogen Utilization Study Group in Chubu comprises Idemitsu Kosan, Iwatani, ENEOS, Sumitomo Chubu Electric, Toho Gas, Toyota Motor, Air Liquide Japan, Nippon Steel, Sumitomo Mitsui Financial Group and Mitsui Chemicals.