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Despite Slow Start, Japan Wants to Promote Hydrogen Fuel Cell Vehicles

Effort Comes as U.S. Plans to Drop Federal Funding For Fuel Cell Car Research

toyota.fchv.430.jpg Japan's Internal Affairs Ministry, dismayed that its goal of having 50,000 hydrogen fuel cell cars on the roads by the spring of 2011 isn't going to be achieved, has called for new measures to promote use of the vehicles.

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A Toyota Highlander fuel-cell vehicle.
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The government, which set the present goal back in 2001, also is expected to release a new target, given that here were only 42 fuel-cell electric vehicles in operation in Japan at the end of the 2008 fiscal year last March.

Already in place, as of April, is an exemption for fuel cell vehicles and other "new-generation" cars and trucks, from Japan's expensive vehicle weight and new-vehicle purchase taxes.

The Japanese government has invested the equivalent of $205 million in fuel cell development in the past five years, and Japanese automakers Toyota and Honda are among the industry leaders in the technology.

FCX400.jpg Honda's FCX Clarity (left) is the world's only purpose-built hydrogen fuel cell car.

It is a terribly expensive vehicle now (estimates of Honda's investment to build 200 of the cars range from $500,000 to $2 million per vehicle) because its body panels are all unique, requiring costly new tooling, and its power system is pretty much hand-built.

But Honda insiders say the car could be made affordable if there were sufficient demand to foster growth of a supplier industry to make fuel cells, batteries and other specialized components in volume.

Meantime, while Japan sees hydrogen fuel cells as a viable addition to a multi-fuel transportation future that includes gasoline and battery-electric vehicles, the U.S. government is proposing - over the objections of major automakers such as GM and Ford that have invested billions in the technology - to drop federal funding of automotive fuel cell research in favor of plug-in, battery-electric vehicles.

John O'Dell, Senior Editor

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