Japan Plans Ample Support for Fuel Cell Vehicles

Government considers subsidies and tax breaks for auto purchase, wants 100 hydrogen fuel stations in the next 18 months.

June 20, 2014

TOKYO – The Japanese government is planning to offer ample support to popularize fuel cell vehicle technology as Toyota Motor Corp and Honda Motor Co prepare to launch hydrogen-powered cars in 2015, according to a report from Reuters.

Earlier this week, the government drafted a timeline that spelled out targets and actions over the next 25 years to commercialize fuel cell vehicles and boost use of hydrogen energy in general. The move comes as Japan's ruling Liberal Democratic Party considers supporting the technology through subsidies and tax breaks, so that by 2025 fuel cell vehicles can sell for around $20,000 or a little more, the same price as popular gas-electric hybrids.

Currently, fuel cell vehicles are far more expensive, and the lack of fuelling infrastructure could get in the way of a successful commercial sales. In Japan, just a handful of hydrogen fuelling stations have been built due to strict safety regulations, high costs and the unclear outlook for demand.

The government aims to cut the price for building a hydrogen fuel station by half to around 200 million to 250 million yen ($2 million-$2.45 million) by 2020, the draft showed. Japan also aims to have around 100 hydrogen stations in operation by end-March 2016, up from 17 now, the draft said.

The timeline, which will be finalized in about a week, does not include fuel cell vehicle sales targets or details on how much in incentives will be offered to car buyers.

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