150 R. M. URIU
industry, had a vested interest in opposing policy change. In the first
section of this chapter, I argue that the decision to pursue hydrogen
was spurred by a unique confluence of factors. First was the crisis caused
by the 3/11 Fukushima nuclear disaster, which led to a search for a
viable, clean alternative to nuclear power. At the same time, the Japanese
hydrogen and fuel cell industry, which had been supported by industrial
policy for three decades, was just at the cusp of becoming a commercially
viable industry. This was a case of an industry being in the right place at
the right time.
In the second part of the chapter, I step back to assess the impact of
Japan’s green industrial policies, which I argue have helped the industry
achieve a degree of commercial viability in fuel cells for residential and
automobile uses. If progress is to be made on the remaining parts of the
hydrogen society—as a storage medium and creating a green hydrogen
supply chain—industrial policy is likely to play a helpful and even necessary role. I also note examples from elsewhere in the world where more
and more private companies are entering the industry and are now
constantly rolling out new technologies and products. And with other
major governments also making new national-level commitments, the
future of the industry seems bright.
Hydrogen and Fuel Cells: Potential, Obstacles,
and the Role of “Green Industrial Policy”
Most of the world seems to be finally coming to realize that preventing
catastrophic global warming will require a drastic decarbonization of all
aspects of our industrial economies. Yet while there has been strong
growth in renewable sources of energy, the industrialized nations are not
close to fulfilling even the modest commitments set forth in the Paris
Agreements. Hydrogen proponents argue that if we are to achieve significant decarbonization, hydrogen and fuel cells will necessarily play a major
role. 1
Proponents see the industry as poised to contribute to three key areas.
First is decarbonizing the residential power sector, where stationary fuel
cells in homes and office buildings can be used to convert hydrogen into
electricity to provide power and heating. Japan has led the way in this
sector, through its ENE-FARM program that encourages the adoption
of stationary fuel cells for use in homes, apartments, offices, and larger
industry, had a vested interest in opposing policy change. In the first
section of this chapter, I argue that the decision to pursue hydrogen
was spurred by a unique confluence of factors. First was the crisis caused
by the 3/11 Fukushima nuclear disaster, which led to a search for a
viable, clean alternative to nuclear power. At the same time, the Japanese
hydrogen and fuel cell industry, which had been supported by industrial
policy for three decades, was just at the cusp of becoming a commercially
viable industry. This was a case of an industry being in the right place at
the right time.
In the second part of the chapter, I step back to assess the impact of
Japan’s green industrial policies, which I argue have helped the industry
achieve a degree of commercial viability in fuel cells for residential and
automobile uses. If progress is to be made on the remaining parts of the
hydrogen society—as a storage medium and creating a green hydrogen
supply chain—industrial policy is likely to play a helpful and even necessary role. I also note examples from elsewhere in the world where more
and more private companies are entering the industry and are now
constantly rolling out new technologies and products. And with other
major governments also making new national-level commitments, the
future of the industry seems bright.
Hydrogen and Fuel Cells: Potential, Obstacles,
and the Role of “Green Industrial Policy”
Most of the world seems to be finally coming to realize that preventing
catastrophic global warming will require a drastic decarbonization of all
aspects of our industrial economies. Yet while there has been strong
growth in renewable sources of energy, the industrialized nations are not
close to fulfilling even the modest commitments set forth in the Paris
Agreements. Hydrogen proponents argue that if we are to achieve significant decarbonization, hydrogen and fuel cells will necessarily play a major
role. 1
Proponents see the industry as poised to contribute to three key areas.
First is decarbonizing the residential power sector, where stationary fuel
cells in homes and office buildings can be used to convert hydrogen into
electricity to provide power and heating. Japan has led the way in this
sector, through its ENE-FARM program that encourages the adoption
of stationary fuel cells for use in homes, apartments, offices, and larger