Why Do Japanese Automakers Like Hydrogen Power?

Matt Posky
by Matt Posky

Honda, Suzuki, Kawasaki, and Yamaha have just collectively promised to develop a slew of hydrogen-reliant engines designed to power small vehicles. While this is supposed to encompass construction equipment, small boats, airborne drones, and even motorcycles, the scheme doesn’t seem to focus on automobiles. However, Japanese automakers have already been working on hydrogen fuel cell vehicles for years and Toyota Chairman Akio Toyoda has even been championing the development of hydrogen-burning motors for some of the brand's racing applications.

It’s largely counter to what the rest of the world is doing and begs the question of why Japan seems so intent on making hydrogen power work. What exactly makes the scheme so appealing to the island nation?


The Japanese government certainly plays a large role here and has been advocating for hydrogen power for years — much, in the same way, China, Europe, and (to a lesser extent) the United States have been pushing all-electric vehicles. In 2017, Japan became the first country in the world to release a national hydrogen strategy.


At the time, Honda had already released the Clarity to consumers, and it would be followed by Toyota’s Mirai. Nissan also expressed an interest in hydrogen technologies and stated it was actively developing FCEVs of its own. Meanwhile, the only brand outside of Japan that seemed to really care for the concept was Hyundai — which released the Nexo.


But it hasn’t been steady progress. Honda CEO Toshihiro Mibe even stated that, despite the company having worked so hard to develop hydrogen cars, he wondered how realistic it would be to see them ever become mainstream solutions for transportation. Of course, that was a few years ago and the industry’s messaging can turn on a dime.


This week, Honda, Suzuki, Kawasaki, and Yamaha released a joint statement saying they will form a research association called HySE (Hydrogen Small Engine) with Toyota on the periphery to take into account how the resulting tech might be adapted for larger vehicles. But the focus is not on hydrogen fuel cell vehicles that utilize electricity for propulsion, they’ll be developing internal combustion engines that burn hydrogen in lieu of gasoline — with the assumption benign that they’ll produce fewer carbon dioxide emissions.


That seems to be the new trend. Interest in creating EVs that haul around tanks of hydrogen is being supplanted by the notion that cars could simply burn hydrogen like we do gasoline.


But why bother at all when so many other manufacturers have deemed hydrogen too volatile to be safely utilized for combustion and too expensive to rationalize as a substitute for the large battery packs going into all-electric vehicles? No matter where hydrogen seems to be inserted into the process, it always seems like a big compromise.


Well, Japan sees EVs as needing to be heavily dependent upon nuclear power to maximize their environmental benefits. But the 2011 Fukushima nuclear disaster has the country rethinking its reliance on atomic energy. Batteries are likewise constructed from rare earth minerals the country doesn’t have in abundance. A major breakthrough in hydrogen production would allow the nation to become energy independent for the first time in modern history.

But such a breakthrough seems a long way off. Presently, the vast majority of hydrogen is produced using coal or natural gas as feedstocks. That makes it incredibly energy inefficient and results in a lot of extra pollution. Though the hope is that there will come future technologies allowing humanity to isolate the chemical element in clean, efficient ways.


Still, we’ve seen how renewable energy sources (similarly championed as green) have had trouble creating enough electricity. Europe, which dove into renewables harder than anybody, is suffering from a legitimate energy crisis right now with prices surpassing historic levels. Germany even had to pivot back toward coal for energy production after realizing there was no way to build enough wind and solar farms.


That’s not to say the above technologies should not be pursued. It’s wise for automakers to plan for all contingencies and they should not be mocked for thinking outside the box. But traditional energy sources remain the most reliable, even if they’ve yet to evolve to a point where there are no consequences.


Regardless, all opinions need to be taken with a grain of salt. Oil companies have a vested interest in your continued consumption of petroleum products and EV manufacturers don’t want you to consider the alternatives because that ultimately means fewer sales. It’s likewise true that what works in one market may not be feasible in another.


In the United States, it’s basically unthinkable to own a hydrogen-powered vehicle anywhere other than California because that’s basically the only state with enough fueling stations to allow for daily driving. But Japan is much smaller than the whole of the U.S. and the government offering billions of yen in subsidies to ensure my hydrogen stations are added will have a bigger impact there — even if overall demand remains lackluster.


Whether or not hydrogen turns out to be a legitimate energy source for the masses, everyone still seems curious about what the Japanese industry is doing. Toyota’s hydrogen racer seems to come with a power plant that’s directly comparable to traditional variants. The Corolla H2 rally prototype even uses a familiar layout and sounds pretty close to a standard engine. Though we’ve not seen it running many races since a fuel leak caused it to catch fire in March. Of course, these speed bumps are normal whenever you’re pushing technological boundaries.


Meanwhile, other Japanese manufacturers say they’ll be hard at work developing smaller applications. At the very least, it will be interesting to see what they churn out.


[Images: Tofudevil/Shutterstock; GELEFIN/Shutterstock]

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Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • ToolGuy ToolGuy on May 21, 2023

    Helium-3, baby!!

  • Chris Chris on Jan 09, 2024

    >Germany even had to pivot back toward coal for energy production after realizing there was no way to build enough wind and solar farms.


    That’s pretty misleading, they opened coal plants to replace the low-carbon nuclear power plants they shut down without a plan for what will replace them.

  • Bd2 Lexus is just a higher trim package Toyota. ^^
  • Tassos ONLY consider CIvics or Corollas, in their segment. NO DAMNED Hyundais, Kias, Nissans or esp Mitsus. Not even a Pretend-BMW Mazda. They may look cute but they SUCK.I always recommend Corollas to friends of mine who are not auto enthusiasts, even tho I never owed one, and owned a Civic Hatch 5 speed 1992 for 25 years. MANY follow my advice and are VERY happy. ALmost all are women.friends who believe they are auto enthusiasts would not listen to me anyway, and would never buy a Toyota. They are damned fools, on both counts.
  • Tassos since Oct 2016 I drive a 2007 E320 Bluetec and since April 2017 also a 2008 E320 Bluetec.Now I am in my summer palace deep in the Eurozone until end October and drive the 2008.Changing the considerable oils (10 quarts synthetic) twice cost me 80 and 70 euros. Same changes in the US on the 2007 cost me $219 at the dealers and $120 at Firestone.Changing the air filter cost 30 Euros, with labor, and there are two such filters (engine and cabin), and changing the fuel filter only 50 euros, while in the US they asked for... $400. You can safely bet I declined and told them what to do with their gold-plated filter. And when I changed it in Europe, I looked at the old one and it was clean as a whistle.A set of Continentals tires, installed etc, 300 EurosI can't remember anything else for the 2008. For the 2007, a brand new set of manual rec'd tires at Discount Tire with free rotations for life used up the $500 allowance the dealer gave me when I bought it (tires only had 5000 miles left on them then)So, as you can see, I spent less than even if I owned a Lexus instead, and probably less than all these poor devils here that brag about their alleged low cost Datsun-Mitsus and Hyundai-Kias.And that's THETRUTHABOUTCARS. My Cars,
  • NJRide These are the Q1 Luxury division salesAudi 44,226Acura 30,373BMW 84,475Genesis 14,777Mercedes 66,000Lexus 78,471Infiniti 13,904Volvo 30,000*Tesla (maybe not luxury but relevant): 125,000?Lincoln 24,894Cadillac 35,451So Cadillac is now stuck as a second-tier player with names like Volvo. Even German 3rd wheel Audi is outselling them. Where to gain sales?Surprisingly a decline of Tesla could boost Cadillac EVs. Tesla sort of is now in the old Buick-Mercury upper middle of the market. If lets say the market stays the same, but another 15-20% leave Tesla I could see some going for a Caddy EV or hybrid, but is the division ready to meet them?In terms of the mainstream luxury brands, Lexus is probably a better benchmark than BMW. Lexus is basically doing a modern interpretation of what Cadillac/upscale Olds/Buick used to completely dominate. But Lexus' only downfall is the lack of emotion, something Cadillac at least used to be good at. The Escalade still has far more styling and brand ID than most of Lexus. So match Lexus' quality but out-do them on comfort and styling. Yes a lot of Lexus buyers may be Toyota or import loyal but there are a lot who are former GM buyers who would "come home" for a better product.In fact, that by and large is the Big 3's problem. In the 80s and 90s they would try to win back "import intenders" and this at least slowed the market share erosion. I feel like around 2000 they gave this up and resorted to a ton of gimmicks before the bankruptcies. So they have dropped from 66% to 37% of the market in a quarter century. Sure they have scaled down their presence and for the last 14 years preserved profit. But in the largest, most prosperous market in the world they are not leading. I mean who would think the Koreans could take almost 10% of the market? But they did because they built and structured products people wanted. (I also think the excess reliance on overseas assembly by the Big 3 hurts them vs more import brands building in US). But the domestics should really be at 60% of their home market and the fact that they are not speaks volumes. Cadillac should not be losing 2-1 to Lexus and BMW.
  • Tassos Not my favorite Eldorados. Too much cowbell (fins), the gauges look poor for such an expensive car, the interior has too many shiny bits but does not scream "flagship luxury", and the white on red leather or whatever is rather loud for this car, while it might work in a Corvette. But do not despair, a couple more years and the exterior designs (at least) will sober up, the cowbells will be more discreet and the long, low and wide 60s designs are not far away. If only the interiors would be fit for the price point, and especially a few acres of real wood that also looked real.
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