【Movement of government】
For the promotion of clean energy, the Ministry of Finance of Japan would conduct auctions in February 2024 to sell "Climate Transition Interest-bearing Government Bond" as a GX (Green Transformation) Economy Transition Bond with the tenor of five years and 10 years. The amount to be issued is around Yen 800 billion each. The auctions for the 10-year tenor bond and the five-year tenor bond are scheduled to be conducted on Feb 14 and Feb 27, respectively. Following the "Act on Promotion of a Smooth Transition to a Decarbonized Growth-Oriented Economic Structure" ("GX Promotion Act"), the government would issue GX Economy Transition Bond of about Yen 20 trillion for 10 years from FY 2023 within the amounts approved by the National Diet each fiscal year.

【Hydrogen】
Saibu Gas is going to close its Higashihama hydrogen refueling station in Fukuoka city on Mar 30, 2024. This is the first commercial on-site station using city gas in Kyushu and was established in 2016. Saibu Gas has no plan to relocate the station and would virtually withdraw from the business.

Meanwhile, Japan H2 Mobility has five plans to set up hydrogen refueling station in the FY 2023, unchanged from the previous fiscal year. As hydrogen refueling station are already established in urban areas, the number of new stations to be set up in FY2024 would be a single digit as well.

On the other hand, more companies including convenience stores and transportation companies are introducing trucks equipped with fuel cells for decarbonization. Because of this, demand for stations for large vehicles is expected to grow rather than for regular cars.

【Ammonia】
In 2023, import prices for anhydrous ammonia was at Yen 114,223 for in January and declined to Yen 46,205 in June due to a fall in feedstock gas prices, according to trade statistics of the Ministry of Finance. The prices moved up after that along with a depreciation of the yen.

For 2024, concerns are growing in the market because it is unclear when Israel's invasion of Gaza and Russia's invasion of Ukraine would end. However, with demand scarce at present, market sources did not forecast the prices to soar.

As clean energy, large-scale multi-fuel combustion with ammonia is drawing attention in 2024. This would be implemented in January to March period at the No.4 unit of JERA's Hekinan thermal power station with 20% of ammonia calorific proposition. Nevertheless, financial assistance by the government is not announced as of December 2023, which is behind the progress of JERA' s business.

In January 2023, JERA announced to sign memorandum of understandings (MOU) with CF Industries and Yara Clean Ammonia via an international competitive bidding. These companies would load ammonia at the Gulf of Mexico to deliver to Japan via the Panama Canal.