Policy record
Hydrogen Society Promotion Act — Price-Gap CfD Subsidy (JOGMEC)
Hydrogen Society Promotion Act — Price-Gap CfD Subsidy (JOGMEC) policy record on H2Prism, with its status, summary, checked official source, and record date.
The official link is checked before a policy can appear here.
8 sourced values · 0 earlier records
JurisdictionJPN
Legal statusin_force
Instrumentproduction_subsidy
Effective2024-10-23
Policy details
SummaryA Contract-for-Difference mechanism enacted under the Act on Promotion of Low-Carbon Hydrogen (May 2024, in force October 2024) whereby JOGMEC pays suppliers the gap between a project-specific 'Strike Price' (full cost-recovery price) and a 'Reference Price' (market price of the displaced conventional fuel) for up to 15 years of supply, with a mandatory further 10-year supply obligation post-subsidy.
Key thresholdsEligible fuels: low-carbon hydrogen, ammonia, e-fuels, e-methane meeting Japan's carbon intensity thresholds. Minimum supply: >1,000 tonnes of low-carbon hydrogen equivalent per year from 2030. Contract term: 15 years of subsidy; supplier must continue supply for an additional 10 years post-subsidy. CO2 intensity eligibility thresholds (see certification record). Strike Price set by applicant via cost-recovery formula; Reference Price set by METI based on substitute conventional fuel price. First project certifications issued December 2025 (JERA/Mitsui blue ammonia from Louisiana, ~772,000 t/yr NH3 from 2030-31).
Support valueTotal program budget: 3 trillion yen (~USD 19.2 bn) over the program lifetime. Individual support value is the strike-reference spread paid per unit of delivered fuel — specific yen/kg clearing amounts are project-specific and not publicly disclosed as standard tariff rates.
Practical implicationProjects must lock in a credible Strike Price formula acceptable to METI/JOGMEC before securing offtake; the Reference Price is linked to fossil fuel markets, so a sustained drop in LNG/coal prices compresses subsidy receipts and increases revenue risk over the 15-year term.
Official source
| Source | Publisher | Checked |
|---|---|---|
| Open official source ↗ | www.jogmec.go.jp | 2026-08-31T17:47:03Z |