Aiming for carbon neutrality by 2050, the Hydrogen Society Promotion Act and the revised JOGMEC Act came into effect on October 23 2024 to promote the supply and utilization of low-carbon hydrogen and its derivatives. To take the lead in promoting the supply and utilization of low-carbon hydrogen and its derivatives early, the Hydrogen Society Promotion Act stipulates special measures involving the following: formulating basic policies, setting up a scheme for approving business plans from both the demand and supply sides, providing support measures for businesses that have received approval for their business plans, granting special regulatory exemptions, and setting out the conduct standards to be addressed by hydrogen suppliers. In respect of providing support measures for approved business plans as one of the measures, JOGMEC will provide subsidies to finance the supply of low-carbon hydrogen and the development of hubs for low-carbon hydrogen. An overview of each support measures is as follows.

1. Support focusing on the price gap
   Subsidies are awarded for low-carbon hydrogen and its derivatives which supplied in Japan, focusing on the price gap between the costs for domestic or overseas hydrogen production and transportation and the price of conventional fuels.
2. Support for the development of hubs
   Subsidies are awarded for part of the FEED (Front-End Engineering Design), engineering and construction costs of domestic transport and storage facilities necessary for multiple companies to utilize low-carbon hydrogen and its derivatives.

In addition, JOGMEC will provide support to the METI on the assessment of the validity and credibility of the business plans by utilizing its knowledge and expertise in the natural gas and other businesses in which it has been involved, when METI assesses and screens the business plans for granting approval. In response to that, JOGMEC has established a new task force in the Hydrogen Project Department of the Energy Business Unit for the support focusing on the price gap which starts ahead of the support for the development of hubs.

JOGMEC will continue to strengthen the necessary functions as an energy and resource policy implementation organization and ensure the steady delivery of projects, in order to achieve decarbonisation and secure stable energy supply.