News Room - Business/Economics

Posted on 22 May 2025

Japan to offer H2 fuel subsidy for commercial vehicles

The Japanese government is set to subsidise the fuel costs for hydrogen fuel cell commercial vehicles, such as trucks and buses, in a bid to support private operators.

Japan’s Ministry of Economy, Trade and Industry (METI) plans to offer a subsidy of up to JPY 700 ($4.84) per kilogram, roughly three-quarters of the price difference between hydrogen and diesel fuel.

So far, government initiatives have been focusing on subsidising part of the expenses of hydrogen station operators. 

“However, when it comes to the fuel cost itself, the cost of procuring hydrogen is higher than that of diesel, and the difference is currently borne by private operators,” the ministry says in a statement seen by Kallanish. “Going forward, the government will expand support for fixed and variable costs at hydrogen stations operated within local governments that will serve as core regions of these areas.”

METI has selected six prefectures – Fukushima, Tokyo, Kanagawa, Aichi, Hyogo, and Fukuoka – as “priority regions” for the introduction of fuel cell commercial vehicles. These regions were selected as they showed a significant demand for fuel cell trucks and buses, plus showed more support towards the technology.

Japan currently has a hydrogen usage target of around 3 million tonnes/year by 2030 and roughly 12 m t/y by 2040. Hydrogen fuel cells are one of the five core strategic fields the government has outlined in its hydrogen strategy.

Source:Kallanish