Toyota gains ground in fight against Tesla as Japanese government clears new hydrogen laws

The Toyota Mirai hydrogen fuel-cell vehicle. “Mirai” means “future” in Japanese.


Last week, the Japanese Ministry of Economy, Trade, and Industry quietly revised critical technical standards for compressed hydrogen filling stations. The revisions will make it easier to establish those stations, a major coup for companies like Toyota which have chosen to back hydrogen fuel-cell cars as the future of automobiles.

This decision fans the 
The Toyota Mirai hydrogen fuel-cell vehicle. “Mirai” means “future” in Japanese.


Last week, the Japanese Ministry of Economy, Trade, and Industry quietly revised critical technical standards for compressed hydrogen filling stations. The revisions will make it easier to establish those stations, a major coup for companies like Toyota which have chosen to back hydrogen fuel-cell cars as the future of automobiles.

This decision fans the flames of the hydrogen vs. electric car debate due to its timing. Tesla founder and CEO Elon Musk was in Tokyo last month to commence sales of his landmark electric car in Japan. A couple weeks later, Toyota sold part of its Tesla stake, a move which dovetailed all-too-conveniently with the company’s open dismissal of electric vehicles.

The feeling appears to be mutual. Musk is equally disdainful of hydrogen-cell cars, calling them a “bullshit” play on consumers. Given the national disparity in filling stations – 100 hydrogen stations are expected by 2015 but there are already 5,000 electric stations, he may have a point in Japan.

METI’s new regulations will make it easier for hydrogen players like Toyota to catch up to Tesla. Under the revised regulations, suppliers can use use liquefied hydrogen instead of only compressed gas in their tanks, can make storage units using cheaper composite materials instead of steel of non-iron materials, and – most importantly – reduced the space required to establish a filling station. Originally, filling stations had to be six meters away from public spaces. That distance has been reduced, assuming the supplier follows appropriate precautions. The revision remains vague on the precise change but, for reference, Japanese gasoline stations must maintain a four meter separation from public spaces.

IT Media is reporting that this change is going to make it easier to find spaces to set up hydrogen filling stations. The facilities can also be made more cheaply, another win for hydrogen supporters.

The timeline might raise eyebrows but there is nothing directly linking Toyota’s hydrogen push to METI’s decision – other than Japan’s famously protectionist automobile industry and Toyota’s standing as one of the most treasured corporate institutions in the country. Regardless of the circumstances behind the legislative change, Toyota will need some help to combat Tesla. For every hydrogen fuel-cell model sold, the Japanese firm could be losing US$133,000.flames of the hydrogen vs. electric car debate due to its timing. Tesla founder and CEO Elon Musk was in Tokyo last month to commence sales of his landmark electric car in Japan. A couple weeks later, Toyota sold part of its Tesla stake, a move which dovetailed all-too-conveniently with the company’s open dismissal of electric vehicles.

The feeling appears to be mutual. Musk is equally disdainful of hydrogen-cell cars, calling them a “bullshit” play on consumers. Given the national disparity in filling stations – 100 hydrogen stations are expected by 2015 but there are already 5,000 electric stations, he may have a point in Japan.

METI’s new regulations will make it easier for hydrogen players like Toyota to catch up to Tesla. Under the revised regulations, suppliers can use use liquefied hydrogen instead of only compressed gas in their tanks, can make storage units using cheaper composite materials instead of steel of non-iron materials, and – most importantly – reduced the space required to establish a filling station. Originally, filling stations had to be six meters away from public spaces. That distance has been reduced, assuming the supplier follows appropriate precautions. The revision remains vague on the precise change but, for reference, Japanese gasoline stations must maintain a four meter separation from public spaces.

IT Media is reporting that this change is going to make it easier to find spaces to set up hydrogen filling stations. The facilities can also be made more cheaply, another win for hydrogen supporters.

The timeline might raise eyebrows but there is nothing directly linking Toyota’s hydrogen push to METI’s decision – other than Japan’s famously protectionist automobile industry and Toyota’s standing as one of the most treasured corporate institutions in the country. Regardless of the circumstances behind the legislative change, Toyota will need some help to combat Tesla. For every hydrogen fuel-cell model sold, the Japanese firm could be losing US$133,000.