Japan is launching a five-year support program for vessels powered by alternative energy sources, allocating 15.1 billion yen — around $95 million. Subsidies will cover up to half of eligible equipment costs.
Japan is launching a 15.1 billion yen program to support vessels with low or zero emissions. According to Splash 24/7, the initiative will run for five years and is aimed at encouraging shipowners and shipyards to increase investment in alternative propulsion technologies.
For vessels powered by hydrogen, ammonia and fully electric systems, the government may cover up to 50% of the cost of eligible equipment. Projects using methanol and hybrid systems will be eligible for support covering up to one-third of the costs.
Eligible equipment includes engines, fuel tanks, fuel supply systems, propulsion systems and shore power equipment. The program applies to new equipment installed on newly built vessels rather than covering the full cost of the ships.
For international trading vessels, the support will focus on hydrogen- and ammonia-powered ships. Domestic shipping projects may also qualify for subsidies for vessels using methanol, batteries and hybrid propulsion systems.
The program has an initial budget of 1.2 billion yen for its first year and will run until January 2031. At the same time, Tokyo is supporting the use of low-carbon steel in newbuilds and the development of marine hydrogen technologies.
Japan is also working on a 40,000-cubic-meter liquefied hydrogen carrier, which is scheduled to enter demonstration operations in 2030.
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