Japan Bets on Hydrogen’s Potential to Diversify Energy Sources

Jul 30, 2014 4:45 am ET

July 30 (Bloomberg) -- The hydrogen market in Japan is set to expand to 1 trillion yen ($9.8 billion) by 2030 and 8 trillion yen by 2050, according to a government report.

“Hydrogen energy has the potential for wide applications, not just fuel cell vehicles and fuel cells for homes,” the government-affiliated New Energy and Industrial Technology Development Organization said in a report. “It also has the potential for areas such as transportation and power generation.”

Japan has the largest number of applications for patents related to fuel cells, according to the report.

The findings come as Japan seeks to diversify its energy sources after the 2011 Fukushima disaster. The resource-poor nation has been pushing fuel cells for homes, with a goal of 5.3 million households by 2030.

Japan’s auto industry should “lead the world” in developing fuel-cell vehicles to retain global competitiveness, the group said in the report.