Press Conference by Minister Nishimura (Excerpt)

*Note: This is a provisional translation for reference purposes only.

 

 9:40-9:53 a.m.
Tuesday, June 6, 2023
Third floor lobby, Annex to the House of Councillors

Opening Remarks

Basic Hydrogen Strategy

I would like to mention two points.
First, earlier this morning, a meeting of the Ministerial Council on Renewable Energy, Hydrogen and Related Issues was held. We revised the basic hydrogen strategy.
The revised basic hydrogen strategy has set two high targets related to the dissemination of hydrogen, the hydrogen utilization target of 12 million tons by 2040 and the capacity target for water electrolysis equipment of 15 gigawatts inside and outside Japan by 2030.
This is an unprecedented, comprehensive strategy that includes pillars such as a hydrogen industry strategy that aims to realize a society in which the core technologies for the hydrogen industry—an area where Japan has an advantage—such as electrolytic equipment, membranes, and catalysts, are used in hydrogen business inside and outside Japan, as well as integrated regulation-support programs to create a hydrogen market. We would like to put this strategy into practice in cooperation with relevant ministries and agencies.
As for detailed information, the administrative staff will deliver a briefing later.

Strategy for Semiconductors and the Digital Industry

Second, a revised version of the Strategy for Semiconductors and the Digital Industry, which has been discussed by a panel of experts since last month, will be published today. Since the strategy was formulated in June 2021, the public and private sectors have worked together to promptly execute the strategy. In addition to the growing importance of economic security, DX, and GX, the momentum for the development and implementation of generative AI has recently been increasing rapidly. To respond to this major global trend, regarding generative AI, we will promote the enhancement of computing infrastructure and the development of AI infrastructure models. In addition, it is essential to establish systems for the development and manufacture of advanced semiconductors that support those initiatives.
Last month, a meeting was held to exchange opinions between the Prime Minister and semiconductor manufacturers. I felt high expectations that the world has for the technological capabilities of Japanese makers of semiconductor manufacturing equipment and materials, and Rapidus. To secure necessary budget funding and fundamentally strengthen initiatives related to generative AI and semiconductors, we have revised the Strategy for Semiconductors and the Digital Industry.
We have already taken the first major step in reconstructing Japan’s semiconductor industry and bringing it to a higher level, but we would like to further accelerate those initiatives. We will strive to enable Japan’s semiconductor industry to demonstrate a significant presence in the global semiconductor market.

Question-and-Answer Session

Basic Hydrogen Strategy

Q: Regarding the Ministerial Council on Renewable Energy, Hydrogen and Related Issues, which you mentioned, could you give us a comment once again? In particular, with regard to the support program to narrow price differences, please tell me about a rough schedule, if any, such as by when the program will be determined and introduced.

A: Japan formulated the hydrogen strategy in 2017, ahead of other countries around the world. Japan has led the world in the field of hydrogen, as indicated by the fact that it was the first country in the world to commercialize fuel cell vehicles.
Amid the energy crisis due to such factors as Russia’s aggression against Ukraine, hydrogen is attracting attention globally. Countries around the world have been engaging in fierce competition over hydrogen.
In this situation, Japan has presented the concept of carbon emissions intensity of hydrogen and exercised leadership to include references to it in a statement issued at the G7 meeting. At IPEF, the hydrogen initiative was also launched under the leadership of Japan and Singapore.
At the Japan-ASEAN Business Week being held this week, I held talks with ministers from various countries and exchanged opinions with corporate executives. All countries are strongly interested in hydrogen.
Under these circumstances, Japan, which has led the world in hydrogen technology, would like to further advance the technology and create a hydrogen supply chain in Asia and the Indo-Pacific region. We have formulated anew a basic strategy for that purpose.
As for the support program to narrow price differences, discussions have been occurring within a council since last year. In response to the increasing interest in hydrogen and growing demand amid the recent trend toward decarbonization, we would like to accelerate the deliberation.

ALPS-Treated Water

Q: The work to inject seawater into the tunnel for discharging treated water from the Fukushima Daiichi Nuclear Power Station started yesterday and is scheduled to end around this noon. Amid the protest from fishermen against the discharge, please tell me about your thoughts and future prospects.

A: Regarding the construction of facilities by Tokyo Electric Power for the discharge of treated water into the sea, I have heard that the boring of the tunnel for the discharge has been completed and that preparations, such as clearing work in the tunnel, are making progress, as you mentioned. I am aware that the injection of seawater into the tunnel for the discharge has started.
I understand that after the injection of seawater has finished, work such as the removal of the shield machine from the tunnel will be conducted, aiming for the completion of the installation of the facilities within the first quarter of 2024.
First of all, the Government would like the construction to go smoothly. As indicated at the meeting of the Ministerial Council in January this year, the Government expects that the discharge into the sea will start between spring and summer this year, after the completion of construction of the facilities for the discharge into the sea, pre-usage inspection by the Nuclear Regulation Authority following the construction, and the issuance of the IAEA’s comprehensive report, which is expected in the first half of this year.
We will take measures to ensure safety and to prevent reputational damage, and we will also continue to provide careful explanations to local residents.

Strategy for Semiconductors and the Digital Industry

Q: Regarding the revised semiconductor strategy, which will be announced today, the Government has already provided support for Rapidus’ investment. Am I correct in understanding that your reference to “fundamentally strengthening the initiatives” indicates the government’s appreciation and a future allocation of more budget funds?

A: Since 2021, we have enacted legislation and secured budget funds, and a large amount of investment has been made from home and abroad, including investments from TSMC, Micron, Kioxia, and Western Digital. Recently, several other companies, including Intel, Samsung, Imec and IBM, have indicated the future direction of activities, including investment in Japan. At the same time, various Japanese semiconductor-related companies, including small- and medium-sized enterprises, are actively investing in Kyushu and other regions as well. We aim to support those investments. In addition, it is expected to become necessary to enhance computing infrastructure and develop models for generative AI and develop semiconductors, including GPUs, that support those initiatives, particularly energy-saving types, so we would like to provide support, including for projects related to advanced semiconductors. With regard to advanced semiconductors, we expect that investments by Rapidus will expand, so we will provide firm support by securing necessary budget funds while implementing various forms of assistance. In short, we will take a major step toward reconstructing Japan’s semiconductor industry so that the industry can demonstrate a significant presence in the world.