Why is the hydrogen fuel cell that Musk complained about considered the future by Japan?

In late 1997, international delegates from around the world gathered in Kyoto to iron out the final details of a controversial climate agreement.

This was encouraged by a kindergarten principal in Kyoto, who said: "The people of Kyoto pray for the success of this conference. The future of all people, especially children, depends largely on the outcome of this conference."

Today, the children who cheered for the Kyoto Protocol are almost thirty years old, but Japan, like most developed countries that signed the Kyoto Protocol, is still working hard to reduce greenhouse gas emissions.

Depressingly, Japan is now more dependent on fossil fuels than it was before the Fukushima nuclear disaster a decade ago.

Be Water – Japan’s all-in bet on hydrogen

The Iwatani hydrogen refueling station in the Shibakoen district of Tokyo looks similar to other gas stations in Japan, but when you get closer you'll find that it's quite different.

Big words "H2" can be seen everywhere. There is no smell of gasoline and no customers.

A gas station employee said business was good if five cars came in to refuel in an hour. As one of the busiest hydrogen stations in Japan, this was one of the busiest days he had ever seen.

"Generally speaking, other hydrogen stations only have an average of three drivers visiting them every day, but we have about 30 here."

The area near the hydrogen refueling station is considered to be the high-end of Tokyo, with many government departments and relatively wealthy residents nearby, which explains why there is a relatively high demand for hydrogen fuel.

Most of Japan's 3,757 hydrogen-powered cars are owned by the government, while the rest are purchased by wealthier environmental enthusiasts.

Although there are few customers, the staff is not frustrated and is optimistic about the future of hydrogen energy. He participated in a three-month on-the-job training before accepting the job. "I really feel the potential of hydrogen energy as the next generation of energy, which is why I chose to do this business. Hydrogen energy has a unique power that prompted me to join this national project."

Japan currently has the world's largest network of hydrogen refueling stations, with 135 stations receiving large amounts of government subsidies, which symbolize the government's heavy bet on the future of hydrogen energy.

Iwatani Hydrogen Station

The Japanese government originally planned to exhibit its envisioned "Hydrogen Energy Society" showcase at the Tokyo Olympics, but the plan may be shelved due to the impact of the epidemic. The plan includes that some equipment in the Olympic Village will be equipped with hydrogen fuel cells for lighting and power generation for air conditioning, and tourists can take hydrogen buses to various places in Tokyo.

Japan's obsession with hydrogen dates back to the oil crisis of the 1970s, when hydrogen energy was part of a green energy plan called the Sunshine Project, which was widely discussed and studied at the time and also included the now relatively mature solar and wind energy.

Since then, the Japanese government has been steadily investing in new technologies in this area. For example, last year the Japanese government invested 70 billion yen in the budget to promote hydrogen energy research. Japan's Ministry of Economy, Trade and Industry was required to allocate 84.8 billion yen in the new fiscal year starting in April last year, of which 30 billion yen was used to subsidize the purchase of hydrogen fuel cell vehicles and to set up various hydrogen refueling stations.

Hydrogen fuel cells complained by Musk

Japan has made two bold and long-term bets on green technology: one is to promote hydrogen as a mainstream fuel, and the other is hydrogen fuel cells, which Japan has high hopes to become an efficient option beyond lithium batteries.

“Hydrogen batteries and solid-state batteries are areas that Japanese companies have been focusing on as a competitive advantage,” said Hirosawa Takada, an auto analyst at Goldman Sachs in Tokyo.

He believes that Japan's recent green push, in addition to efforts by China and the Biden administration, will rapidly accelerate the global transition to electric vehicles.

Toyota has been working on advanced solid-state battery technology for more than a decade and plans to unveil a prototype vehicle this year.

Toyota claims its battery can power up to 500 kilometers of driving on a single charge, about twice the range of today's average electric car.

Its batteries are smaller, don’t require any cooling systems, allow for more legroom inside the car, and are not as prone to catching fire as lithium batteries.

Solid-state batteries will also be able to fully charge in just 10 minutes, which is more like the time it takes to refuel an engine at a gas station.

However, there are many voices of opposition full of concerns, the most important of which are the possibility of toxic sulfide gas leakage and the fact that the cost of solid-state batteries is much higher than that of lithium batteries.

Although Japan has a significant presence in the electric vehicle battery market - Panasonic makes batteries for Tesla - it is still far behind us, and China has been relentless in its ambition to dominate this market.

Japan is trying to address this by encouraging the development of solid-state batteries.

Toyota launched its first commercial hydrogen car, the Mirai ("future" in Japanese), in 2014. The second model of the Mirai came out in December 2020. The Mirai runs on a "hydrogen fuel cell" that does not emit carbon dioxide and can be quickly refilled at roadside stations.

However, hydrogen fuel cells also have very obvious characteristics. Their storage requires high voltage, and the electrolysis process is very expensive. For this reason, Tesla founder Musk called hydrogen fuel cells "fool batteries" and pointed out that hydrogen-powered cars are "an incredibly stupid idea." Volkswagen also completely denied the prospects of hydrogen fuel cells as passenger cars.

The disadvantages of hydrogen fuel cells are indeed difficult to ignore. They are difficult to store and expensive, but they are very suitable for heavy freight trucks. Compared with carrying heavy lithium batteries, hydrogen is more suitable for long-distance transportation of large goods.

When it comes to future energy choices, Japan seems to be more willing to find hope in despair. The most confident example of Japan's hydrogen is the port city of Kobe in the west, where the world's first hydrogen carrier is docked.

Japan's Kawasaki Heavy Industries launched the world's first liquefied hydrogen carrier, which is currently moored in Kobe City. (Photo by Maho Obata)

The ship was launched last year and is the world's first ship carrying hydrogen. The hydrogen is kept at an extremely low temperature of -253 degrees Celsius and compressed into a liquid. The ship is scheduled to transport hydrogen from Australia to Japan starting this year.

Kawasaki aims to build two ships to ship 225,000 tonnes of hydrogen to Japan by 2030, enough to power three million fuel cell vehicles with a range of 10,000 kilometres per year.

Japan sees hydrogen as important not only for reducing carbon emissions but also for energy security. Japan relies heavily on oil shipped from the Middle East and through maritime lanes in the South China Sea, and the energy conundrum has been complicated by an informal ban on new nuclear power plants since the 2011 Fukushima disaster.

"As Japan is resource-poor, it has to diversify its energy sources," said Toshiyuki Shirai, head of the Hydrogen and Fuel Cell Strategy Office at Japan's Ministry of Economy, Trade and Industry. Hydrogen is attractive because, unlike electricity, it can be produced from a variety of resources, from fossil fuels to wind or sunlight, and can be imported from anywhere.

The chicken and the egg dilemma

Toyota's Mirai costs 7.1 million yen (without subsidies), twice as much as a Nissan Leaf electric car. Filling up a Mirai's tank costs 6,776 yen for 850 kilometers, while a full charge for a Nissan Leaf costs only about 1,860 yen at most, but the latter has a shorter driving range of about 570 kilometers.

The downside to the Leaf is that it takes up to an hour to charge, while the Mirai only takes 3 minutes.

The advantages and disadvantages of both are very obvious, but if I were to evaluate them, it would be too easy to make a choice. I would rather have a smaller mileage and more charging time. I would not choose the more expensive hydrogen energy because most people cannot afford it. In comparison, lithium batteries can save us more money.

In my opinion, it is not realistic to use hydrogen energy to power civilian light vehicles in the short term.

This is a chicken-and-egg dilemma for Japan. If hydrogen fuel cells cannot achieve large-scale commercial value, their development will inevitably be restricted by economics. After all, there is no development without money. But on the other hand, if they are not vigorously developed, the problem of reducing their costs will be even more distant.

Hydrogen does not release carbon dioxide when burned; the only emission is water vapor. However, the process of producing hydrogen from fossil fuels (such as lignite) is not very clean. Hydrogen produced from fossil fuels is called grey hydrogen, while hydrogen from renewable energy is called green hydrogen, and when used in combination with carbon capture and storage is called blue hydrogen.

Japanese companies like Chiyoda say they are aiming for blue or green hydrogen. However, for now, they say they will also use much cheaper grey hydrogen to try to kick-start the market.

In other words, for a clean future, you may have to use "dirty" means at the beginning. In the case of Kawasaki Heavy Industries' project in Australia, hydrogen is produced from cheap brown coal, also known as gray hydrogen.

About two decades ago, a nonprofit group piloted a "human-powered" taxi in Kyoto. Japan has long struggled to develop green energy solutions.