Japan is set to offer JPY2 million ($21,000) in subsidies for fuel-cell vehicles as an attempt to promote hydrogen technology and fuel-cell cars.
The decision comes as car manufacturers such as Toyota and Honda are scheduled to launch their next-generation zero emissions hydrogen vehicles (called the Fuel Cell Vehicle and FCEV Concept respectively) from 2015.
With the subsidy, the consumers would pay about JPY5 million ($52,500) for Toyota's fuel-cell sedan, which is set to go on sale by the end of March 2015 and priced at about JPY7 million.
The new technology uses hydrogen as fuel and run on electricity from cells that combine hydrogen with oxygen and emit only water vapour and heat, though some carbon dioxide is emitted when hydrogen is produced from hydrocarbons.
According to Reuters Japan's Prime Minister, Shinzo Abe said: "This is the car of a new era because it doesn't emit any carbon dioxide and it's environmentally friendly. The government needs to support this."
However, it is being reported that industrial experts are doubtful about the technology because building up infrastructure of hydrogen fuel stations are expensive.
