Publication date: Oct 20, 2025 METI Grants First Price Gap Support for Hydrogen and Ammonia Supply Projects

METI Grants First Price Gap Support for Hydrogen and Ammonia Supply Projects

The Ministry of Economy, Trade and Industry (METI) has approved the first projects for a price gap support program that subsidizes the cost difference between hydrogen/ammonia and fossil fuels – as set out in the Hydrogen Society Promotion Act of May 2024. The first approvals cover two projects: a green hydrogen project by Toyota Tsusho and a low-carbon ammonia project by Resonac. The exact amounts of support for each project have not been disclosed. The public call for applications attracted 27 proposals, with total requested funding far exceeding the government’s planned JPY 3 trillion support budget for the program.

Toyota Tsusho plans to establish a special purpose company (SPC) through its subsidiary to produce approximately 1,600 tons/year of green hydrogen, using onshore wind power. The hydrogen will be supplied to steel plants as a replacement for city gas. Resonac will produce hydrogen by gasifying discarded plastics and clothing. Using this hydrogen as feedstock, it plans to produce about 20,000 tons/year of low-carbon ammonia, which will be used to manufacture textile raw materials.

Both approved projects are scheduled to begin supplying hydrogen and ammonia in FY2030, after which they will receive 15 years of financial support. Following the support period, the companies will be required to continue supply for an additional 10 years.

The government plans to approve several more projects within FY2025, and hopes to expand the market to 3 million tons by 2030, 12 million tons by 2040, and around 20 million tons by 2050.