“Financing Programme to Demonstrate Decarbonization
Technology for Realizing Co-Innovation”
and“Pilot Project for Comprehensive Support throughout
the Whole Hydrogen Supply Chain Abroad”
February 18, 2022

Global Environment Centre Foundation(GEC)JCM Financing Schemes in FY2021 by MOEJ
Japan (MOEJ) promotes the JCM Financing Schemes for the transition
to a decarbonized society in developing countries.

< JCM Financing Schemes >1. Financing Programme for JCM Model Projects✓2. Financing Programme to Demonstrate Decarbonization
Technology for Realizing Co-Innovation✓3. Pilot Project for Comprehensive Support throughout the Whole
Hydrogen Supply Chain Abroad
Budget for projects starting from FY 2021 is about JPY 8.8 billion(approx. USD 88 million) in total by FY2023 (USD1 = JPY100)
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“Financing Programme to Demonstrate Decarbonization

Technology for Realizing Co-Innovation”

Outline of financing programme 1
Purposes and Characteristics
This financing programme aims to;◼ Contribute to creating a decarbonized society through renovation and dissemination of high quality
decarbonization technologies.
◼ Create innovation beneficial for both Japan and partner countries through collaboration (co-innovation).
◼ Contribute to fulfill the aim of a greenhouse gas reduction in Japan through the Joint Crediting Mechanism(JCM) .
◼ Bring benefits to the technology developers in Japan as a result.
International Consortium

Participant Eligibility

Partner Participant◼ Japanese entities (e.g. private companies)

Partner Country Company

Participants must establish
the International Consortium that consistsof foreign entities, etc.

• Cooperation with Representative
Participant• Operation & Management ofFacilities & Equipment• Providing Information toMOEJ/GEC

Representative
Participant
Japanese Company• Applicant and Contact Entity
to GEC• Management of the project• Liable for the Obligation ofthe Programme4Outline of financing programme 2
Implementation Period of Financing Programme◼ Project implementation period shall be within 3 years.
* Application documents for the Contract of Finance must be submitted in the first fiscal year.

Ratio of Financial Support◼ Small and medium-sized enterprises: 2/3** Definition in the law of Japan◼ Participants who do not fall into the above classification• Project cost at time of the application exceeds ¥100,000,000 per fiscal year: 1/2• Project cost at time of the application does not exceed ¥100,000,000 per fiscal year: 1/3

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Eligible Technologies◼ This financing programme is intended for renovation and demonstration ofdecarbonizing technologies that reduce energy-related CO2 emissions.
◼ Desirable projects are those that aim to systematize or package multiple technologies.

Eligible Technologies are contributing to;;◼ The reduction of energy-related CO2 emissions through waste management in partnercountries.
◼ The reduction of CO2 emissions from the transport, household, or business sectors and others
in partner countries.
◼ The promotion of renewable energy using solar, wind, geothermal or hydro power generationin partner countries.
◼ Transformation of social systems of partner countries into decarbonizing ones.
◼ The reduction of energy-related CO2 emissions other than the above cases.
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Costs Eligible for Financing◼The financing programme covers the costs below.
◼Costs directly required to implement the project.
Cost of ;◼ Machinery and equipment◼ Erection and installation◼ Ancillary work
◼ Survey and test
◼ Facilities / instruments (including monitoring system)◼ Administrative work
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Example of demonstration project

Partner Country : IndonesiaDevelopment of an energy management system (EMS) to provide a stable supply of renewable energy
Representative Participant: Kyudenko Corporation
Outline of projectThis project aims to;◼ Reduce CO2 emissions by substituting renewableenergy for existing diesel generators.
◼ Also, in collaboration with Agency for the Assessment
and Application of Technology, to demonstrate EMS
and storage batteries for stable power supply from×various sources including renewable energy.
Region: Sumba Island◼ A model region for the introduction of renewableenergy designated by the Indonesian government.
◼ Local power grids in isolated islands are mainly
supplied by diesel generators.
Map data ©2021 Google8

“Pilot Project for Comprehensive Support throughout
the Whole Hydrogen Supply Chain Abroad”

Overview of the Project◼ Produce and storage renewable hydrogen in a third country where renewable energy isabundant, and transport to supply and use in island countries.
◼ Cultivate demand market by supplying renewable hydrogen to island countries, which
will lead to JCM projects and help developing countries transition to a decarbonizedsociety.
Production

Supply & UseStorage & TransportationＨＨＨShipHydrogenＨReplacement ofexisting diesel byhydrogen mixedfiring or fuel cell

Renewable Energy(PV, Wind farm)

Produce hydrogen by using
surplus RE in a third country※Large amount of surplus RE isneeded. (ex. Australia)

Storage in somekind of career(ex. Liquid hydrogen,Ammonia, Hydrogen
absorbing alloy)

Transport
Use in island countries

Future Vision
JCM project, horizontal
expansion

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Implementation StructureInternational Consortium
Partner Participants：• Cooperation withRepresentative Participant• Operation & Managementof Facilities & Equipment• Providing Information
Provision to MOEJ/GECRepresentativeParticipant
Japanese Company

Representative Participant:• Applicant and Contact
Entity to GEC• Management of the project• Liable for the Obligation ofthe ProgrammePartner ParticipantPartner Participant

Third Country Company(ex. Australia)

Partner Country Company(ex. Island Country)

Production

Storage & Transportation

Supply & Use

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Financial Support
1.

Budget for projects starting from FY 2021：
JPY 500 million/year (Approx. USD 5 million/year)

2. Ratio of Financial Support :50% of Costs Eligible for Financing

3.

Costs Eligible for Financing :Costs directly required to implement the projecta. Machinery and equipment
b. Erection and installationc. Ancillary workd. Survey and test
e. Facilities / instruments (including monitoring system)
f. Administrative work

12Period of Financial Support
1. Implementation Period of the Project :Within 3 fiscal years

2. Period of Financial Support :1 fiscal year (applicable continuously to the next year)
3. Evaluation of financial support needs 2 steps as follows◼ Preliminary Selection: The detailed plan of the entire project period should
be described in the project implementation plan in the proposal in the firstyear.
◼ Evaluation of contents: Applicants selected for the financial support must
submit application documents for the Contract of Finance each fiscal year.
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Example of demonstration project 2

Third country : Australia / Partner country : Republic of Palau

Demonstration Project on Green Hydrogen Production in Australia,
its Transportation to Palau and Utilization by Fuel Cell and Fuel Cell Boat

Representative participant:
Sojitz Corporation

Outline of demonstration project
Demonstration project involves the use of solar power generation to produce greenhydrogen in Queensland, Australia, which will then be transported to Pacific Island
countries for utilization in small fuel cells and hydrogen fuel boats that have thepotential to popularize hydrogen use on islands.
1. Stationary Fuel cells
Transport hydrogen to Palau by Hydrogen Absorbing Alloy (HAA) cassette. In anticipation of a hydrogenbased society after 2030, demonstrations will be conducted with the aim of implementing stationary fuelcells to realize a distributed power supply and backup power sources.
2.Fuel Cell Boat
In anticipation of a hydrogen-based society after 2030, a demonstration will be conducted with the goal ofconverting marine fuel small boats to hydrogen fuel boats in the future. During the period for this project,demonstrations with hydrogen fuel boats will first be carried out off the coast of Queensland, Australia.

Outline of partner country / region
PalauQueensland

Maps Data: Google, ©2021【Site for utilization : Republic of Palau】
There is currently a high dependence on fossil
fuels for energy. As part of its efforts to shift
towards decarbonization, Palau has committed
to achieving a target of 45% renewable energy
generation by 2025.
【Site for production : Queensland, Australia】
The government of Japan and Australia haveannounced their commitment to the JapanAustralia Partnership on Decarbonization
through Technology.

Production
Solar Power

Transportation

Utilization

HAA CassetteFuel Cell

H2H2

H2Mobile Hydrogen
Station

H2

Fuel Cell Boat

H2

Prospects at commercialization (around 2030)
Expected GHG reduction: 9,131tCO2/y
Seek to achieve early commercialization of an economically efficient hydrogen supply
chain that will extend to include neighboring Pacific Island countries.
1. Stationary Fuel cells
Palau has a poor power grid system, and there is a demand for the construction of a backup
power system. At present, the country’s main source of energy is independent power plantsthat rely on diesel fuel. Try to achieve decarbonization by implementing stationary fuel cells
as a distributed power supply and a backup power source.
2. Fuel Cell Boat
Palau is an archipelago comprised of over 200 islands, where more than 1000 marine fuelsmall boats are in operation as part of island tourism, daily life, and the fishing industry. Try to14
achieve decarbonization by converting marine fuel small boats to hydrogen fuel boats.

Global Environment Centre Foundation (GEC) Tokyo OfficeE-mail : inov@gec.jp; hydro@gec.jp
URL : http://gec.jp/