Task force aims to put Japan on top for fuel-cell cars

Lawmakers, government agencies, and auto makers are setting up a task force aimed at making Japan the global leader in the up and coming market of fuel-cell cars, hoping the new vehicle technology will bolster the country’s industrial competitiveness.
Fuel-cell vehicles are said to be the most environmentally friendly because they emit no carbon dioxide from their tailpipes. They are powered by electricity generated by combining hydrogen and oxygen. They offer advantages over battery-powered cars in that they can be refueled quickly and offer greater range.
The task force will officially begin its work on June 26, led by former Environment Minister Yuriko Koike. Initial participants will include Toyota Motor Corp., Nissan Motor Co., Honda Motor Co., JX Nippon Oil and Energy Corp., Iwatani Corp. and Kawasaki Heavy Industries Ltd. , as well as members of the ruling Liberal Democratic Party and Trade Ministry officials.
Toyota and Honda plan to roll out commercial fuel-cell cars in 2015. They are currently working with oil companies to set up about 100 hydrogen fueling stations across the country by that year.
Pricing is the next key in the development of the fuel-cell car market. Toyota is planning to sell their cars for around ¥5 million (US$50,176), while the task force wants a price closer to ¥3 million (US$30,105). It will work on a plan with the government for subsidies and tax breaks to make this possible.
Stumbling blocks include the high cost of hydrogen stations, partly caused by restrictions on where they can be located. It costs about ¥500-600 million (US$5.02-6.02 million) to build a hydrogen station.
The government stated in its growth strategy blueprint that it will review hydrogen station regulations before the cars hit the market in 2015. The task force will discuss other options such as allowing the use of cheaper steel in the cars as a construction material to reduce costs.
Market research firm Fuji Keizai Co. forecasts global sales of fuel-cell cars to be around ¥1.5 billion (US$15 million) in fiscal 2013, growing to ¥2.91 trillion (US$29.2 billion) by fiscal 2025. The growth of the fuel-cell auto market is also expected to benefit materials makers and other industries.
(June 25, 2013)