Tokyo-based banking and financial services company Mizuho Financial Group announced today a new goal to provide JPY 2 trillion (USD$13 billion) in financing for the production and supply of hydrogen and related technologies by 2030.

According to the company, the new goal reflects a growth in funding needs for the hydrogen sector, a key component for decarbonization in several emissions-intensive sectors, to address the growing urgency to set up supply chains for hydrogen and related technologies. Mizuho noted that hydrogen adoption to date has been hindered by issues including high costs and companies’ ability to secure funding, as well as the need to generate demand.

Hydrogen is viewed as one of the key building blocks of the transition to a cleaner energy future, particularly for sectors with difficult to abate emissions, in which renewable energy solutions such as wind or solar are less practical, such as metals manufacturing and heavy transport.

Around 90 million metric tons of hydrogen are produced annually, although the vast majority is extracted using fossil fuels, which create pollutants and GHG emissions. The development of clean hydrogen capacity, such as green hydrogen, which uses renewable energy to power the process to extract hydrogen from other materials, will require massive investments in areas including infrastructure, electrolysis, and transport.

Mihuzo outline key areas that it will focus on to achieve its new hydrogen finance goal, including developing business strategies focused on hydrogen and related technologies, establishing a group-wide framework dedicated to supporting hydrogen and related technologies, and expanding its pool of personnel specialized in related areas. The company added that it aims to further expand its initiatives to promote the construction of supply chains for hydrogen and related technologies going forward.

The announcement follows the launch of a goal by Mizuho last year to facilitate JPY 100 trillion ($USD 700 billion) in sustainable finance between 2019 and 2030, including JPY 50 trillion in environment and climate change-related finance.