ESG Today writes that the initial funding announced for the project amounts to 400 million USD and among the first investors are Toyota Motor Corporation and TotalEnergies. Back in 2020, Japan pledged to become carbon neutral by 2050, while reducing its carbon footprint by 46% before 2030. Also, for its 2030 energy strategy, the country wants to cut the share of fossil fuels from a current 75% to 40% from its energy mix.

Through the new fund, the companies will support the development of a low-carbon hydrogen production hub in Japan and internationally, providing financial support to the companies in the industry, which can receive investments from public and other private investors, as well.

Helle Kristoffersen, President of Asia and member of the Executive Committee of TotalEnergies, said that "we are convinced that only a collective effort will enable low-carbon hydrogen solutions to emerge on an industrial scale."

The Japan Hydrogen Association (JH2A) is among the companies that will manage the fund.