Japan Seeks to Maximize Nuclear Power, Renewable Energy; Also Working to Bypass Hormuz for Oil Supplies
Details of a proposed policy package for energy diversification, compiled by the government in response to the instability in the Middle East, were revealed on Tuesday.
Japan is striving to optimize its energy mix by increasing reliance on nuclear power and renewable energy sources, while also working to circumvent the Hormuz Strait for oil supplies, according to a proposed policy package unveiled on Tuesday. The package, titled "Comprehensive package for strengthening the resilience of the energy supply-demand structure," aims to bolster the nation's energy security amid Middle East instability.
The plan is set to be finalized and announced at the Green Transformation (GX) Implementation Council on Wednesday, with Prime Minister Sanae Takaichi expected to attend. The policy package comprises three key pillars: diversifying fossil fuel procurement, accelerating GX initiatives, and enhancing international cooperation through the Japan-led "Powerr Asia" framework.
To diversify fuel sources, the government will offer financial support to businesses shifting their crude oil, naphtha, and other petroleum product purchases away from the Hormuz Strait. Additionally, the Japan Organization for Metals and Energy Security will fund the construction of pipelines designed to bypass the Hormuz Strait and establish a new national crude oil stockpiling system to secure naphtha, which is currently not eligible for stockpiling.
In pursuit of reducing dependence on fossil fuels, Japan plans to rebuild up to five nuclear reactors between the 2040s and 2050s, while accelerating research and development for next-generation reactors and small modular reactors (SMRs). The government will also promote investments in domestic industrial infrastructure, such as next-generation Perovskite Solar Cells and geothermal power generation.
Moreover, the supply of alternative fossil fuel sources, like hydrogen and ammonia, will be expanded. Concerns over naphtha and other petroleum products' supply have surged since the US and Israeli attacks on Iran, causing a de facto blockade of the Hormuz Strait. Although emergency measures are beginning to address the petroleum product supply bottleneck, the government believes that structural measures are crucial for future emergencies.
It intends to introduce relevant bills to the Diet's extraordinary session this autumn and prioritize funding for related measures in the year-end budget.
Written by urgent.news from The Japan News by The Yomiuri Shimbun's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
