Japan has opened a five-year JPY 15.1bn ($94.8m) programme offering subsidies of up to 50% for equipment on hydrogen-, ammonia- and battery-powered newbuildings, according to Japan’s Ministry of Land, Infrastructure, Transport and Tourism.
The initiative is intended to turn alternative-fuel ship projects into firm orders and establish an early construction track record for Japan’s maritime industry.
The programme, launched with the Ministry of the Environment, has a first-year allocation of JPY 1.2bn ($7.5m).
Methanol-fuelled vessels and battery hybrids qualify for subsidies covering up to one-third of eligible costs.
Funding is available for new engines, fuel tanks, fuel supply systems, electric propulsion equipment, batteries and certain shore-power installations. It does not cover the vessel’s full purchase price. Internationally trading ships are eligible only if fuelled by hydrogen or ammonia. Domestic projects may also include methanol-fuelled, battery-electric and hybrid vessels.
Applications opened on 24 August and close at noon on 3 December. Supported vessels must be completed by 31 January 2031.
Methanol and hybrid projects must demonstrate an expected reduction in carbon dioxide emissions of at least 30% against comparable operation using heavy fuel oil. Methanol applicants must also submit plans identifying the proposed proportion and suppliers of low-carbon fuel.
Certified low-carbon steel used in ship structures qualifies for additional assistance calculated from JPY 60,000 ($377) per tonne. The subsidy rate is capped at one-half, rising to two-thirds for applicants that have made the relevant Japanese Green Transformation declaration.
The Japan Ship Technology Research Association will administer the scheme.
The Tokyo-based organisation is a Japanese general incorporated foundation conducting research into ship technology, maritime regulation and technical standards, while supporting the country’s shipbuilding and marine equipment sectors.