Eleven Japanese companies, including automotive giants Toyota, Nissan and Honda, and oil companies JXTG Nippon Oil and Idemitsu Kosan, have signed an agreement to form a new company in the spring of 2018, aimed at the full-fledged development of hydrogen recharging stations (HRS) for fuel cell vehicles (FCV).

The 11 companies include Toyota Motor Corporation, Nissan Motor Co Ltd., Honda Motor Co Ltd., JXTG Nippon Oil & Energy Corporation, Idemitsu Kosan Co Ltd., Iwatani Corporation, Tokyo Gas Co Ltd., Toho Gas Co Ltd., Air Liquide Japan Ltd., Toyota Tsusho Corporation, and Development Bank of Japan Inc.

The new company will be established to accelerate Japan’s hydrogen initiative – which is driven mainly by these 11 companies – toward the achievement of Japan’s common target shared by the government and industries regarding the development of hydrogen recharging stations.

According to the “Strategic Road Map for Hydrogen and Fuel Cells” (revised March 22, 2016) released by the Council for a Strategy for Hydrogen and Fuel Cells, an industry body organized by the Ministry of Economy, Trade and Industry (METI) of Japan, the target penetration will be 160 stations and 40,000 fuel cell vehicles by FY 2020, in the initial phase of promoting fuel cell vehicles powered by hydrogen.

The objective of the new company is to enhance the collaboration among infrastructure developers, automakers, and financial institutions in order to simultaneously accelerate and scale up Japan’s deployment of HRS and FCV.

The new company will aim to seek wider participation by HRS-operating companies and investors, to achieve a sustainable HRS business and FCV penetration as quickly as possible, to enable the creation of a full-fledged hydrogen society in Japan.

The vehicle manufacturers will contribute financially to the operations of the new company for an efficient deployment of hydrogen refueling stations, improving the convenience for users and promoting public awareness of the public.

Meanwhile, financial institutions will partially cover the costs of deployment of the HRS through investments, by providing the necessary funds until the business begins to be commercially sustainable.