The Potential of Hydrogen Energy and Innovative Diffusion Models in Japan

Japan’s energy system is vulnerable in terms of energy security and self-sufficiency, due to the nation’s scarcity of fossil fuel resources and heavy reliance on imports, but the government sees promise in hydrogen energy. Hydrogen refueling stations and fuel cells are essential components in transportation and energy sectors, but several obstacles exist. This chapter looks at two applications for hydrogen. First it compares scenarios for introducing fuel cell vehicles and buses along with the required hydrogen refueling stations in Kanagawa Prefecture. Analysis shows that uneven user distribution will hinder the deployment of hydrogen refueling stations and negatively impact service equity due to challenges providing service where hydrogen demand is low. However, fuel cell buses could play a major role in reducing the financial risks of hydrogen stations and increasing service equity geographically. The second application examined is the concept of an integrated system built around fuel cell use to provide electricity, heat, and water to individual households and buildings, seen from the perspective of the food-energy-water (FEW) nexus. Such decentralized systems could form a complete cycle of resource collection, production, distribution, and recycling based on independent home systems. Combinations of systems offer even greater prospects for the future of hydrogen.