Boosting cooperation for the global hydrogen market ramp-up
Through the Energy Partnership, Japan and Germany have strengthened cooperation on hydrogen financing. The partnership facilitated an Memorandum of Understanding (MoU) between H2Global and Japan Oil, Gas and Metals National Corporation (JOGMEC), signed in January 2024 and expanded in June, driving the global hydrogen market's growth as both countries aim to be major importers.
Background
Japan and Germany have ambitious goals for the production, import, and use of hydrogen. In the future, they will be among the world's largest hydrogen importers. Both countries face common challenges, such as limited potential for domestic supply, the establishment of a global hydrogen market, issues of hydrogen financing, certification, transportation, and safety. These topics are at the core of the "Hydrogen" working group of the Japanese-German Energy Partnership.
Challenge and Goal
Since 2023, hydrogen financing has been a key focus of the working group. Questions regarding the development of both the supply and demand side, as well as potential public support measures, are significant to Japan and Germany. Since 2023, the Japanese side showed great interest in the German H2Global mechanism and shared their views on suitable financing mechanisms to support the hydrogen market, with the aim of learning from each other and building on existing experiences for the development of a Japanese financing instruments.
Action taken
Several in-depth discussions and a workshop were organized between Federal Ministry for Economic Affairs and Climate Action (BMWK) and Ministry of Economy, Trade and Industry (METI) on the topic of hydrogen financing within the framework of the Energy Partnership. These events included participation from the H2Global Foundation and representatives from financial institutions and public financial agencies from both countries. In these formats, various financing instruments were thoroughly presented and discussed, and cooperation potentials were concretized. The H2Global Foundation was additionally put into contact with relevant Japanese industry and public stakeholders interested in further cooperation through a dedicated information event and the further inclusion in the networks of the Energy Partnership.
Impact
Both countries recognize the need for closer cooperation in hydrogen financing to drive the global market ramp-up. In November 2023, the cooperation committee of the Energy Partnership officially included the future exchange between H2Global and JOGMEC, the Japanese implementing agency for the Japanese financing instrument, in the working group's agenda to collaborate on potential joint instruments for the global hydrogen market expansion. Both organizations signed an official MoU in January 2024 to further formalize this cooperation, which was expanded with additional content in June 2024. Additionally, the H2Global Foundation signed MoUs with the Japanese Hydrogen Association (JH2A) and the Tokyo Metropolitan Government and gained new Japanese members.
