Japan’s ¥3 trillion Contracts for Difference (CfD) subsidy program for clean hydrogen has been heavily oversubscribed, with applications far exceeding the budget according to METI reports.

Launched by METI in December 2024 and closed in March, the 15-year scheme received close to 30 applications. METI plans to begin selecting projects on a rolling basis later this fiscal year, according to Shinichi Kihara, director general for international carbon neutrality policy.

This reflects a broader global trend, with the IEA predicting a 10x growth in all forms of hydrogen by 2040, with an increase in green hydrogen estimated to be between 100x to 150x current production.

This is not a linear growth curve; for a hockey-stick curve to be realized, human resources will face a massive bottleneck if hiring, training and growing the workforce isn’t urgently addressed.