Investing in Japan's Energy Transition: Demand Visibility and Long-Term Certainty

Lars Schaumann
Country Managing Director Japan
Royal Vopak

March 2026

As the global energy transition accelerates, Japan is moving from ambition to implementation. Targeting carbon neutrality by 2050, the country is rolling out the policies, infrastructure, and demand signals needed to make next-generation fuels viable at scale.

For Royal Vopak, one of the world's largest independent energy storage and infrastructure service provider, Japan represents a strategically important market. In 2024, the Rotterdam-headquartered company opened an office in Tokyo, marking a significant step in its engagement with Japan's green transformation (GX).

"Japan has defined a clear decarbonization roadmap," says Lars Schaumann, country managing director. "Technology leadership, a clear policy and a clear ambition to achieve net zero 2050 were among those reasons why we believe that Japan is a potentially attractive market."

Founded in 1616 in Rotterdam, Vopak has evolved alongside shifts in global energy demand. From From tea then to energy products, chemicals and LNG, and now low- or no-carbon alternatives such as hydrogen, ammonia, and biofuels, the company has continually adapted its infrastructure model to new energy realities.

Rather than producing or trading fuels, Vopak specializes in the safe storage and logistics of liquid and gaseous bulk products. Its global network now includes dedicated ammonia storage facilities at six locations worldwide—experience it is bringing to Japan's emerging ammonia economy.

Ammonia plays a central role in Japan's decarbonization strategy, with the government targeting 3 million tons of ammonia used as fuel by 2030. Initially envisioned as a hydrogen carrier and "co-firing" supplement in coal-fired power plants, ammonia is also gaining attention as a future marine bunker fuel and for "mono-firing" in gas turbines—meaning power could be generated with ammonia alone. "Clean ammonia is a fundamental element in Japan's decarbonization pathway," Schaumann says. "Japan's focus on ammonia and hydrogen is a strategic fit within Vopak's global 'accelerate' strategy, which focuses on developing critical infrastructure solutions to support energy transition."

In 2025, Vopak announced plans for a partnership with IHI to jointly develop and operate an ammonia terminal in Japan. The initiative aims to establish a hub for marine transportation and build out a broader domestic ammonia supply chain, with commercial operations targeted for around 2030.

Japan plans to retrofit its extensive fleet of coal and LNG plants for ammonia / hydrogen co-firing—creating a large-scale market for zero-emission fuels without rebuilding the entire power grid from scratch. The GX Promotion Act, enacted in May 2023, underpins this initiative and strengthens policy predictability, a crucial factor in allocating long-term infrastructure investments.

"Our experience in the Japan market has shown a positive, stable investment climate where the government policies provide a high level of certainty and confidence for global investors," Schaumann says. "This consistency allows us to model long term horizons with a level of confidence that is increasingly rare in the global energy landscape."

Japan's industrial base and safety culture are also central to Vopak's confidence.

"Japan is a pioneer in the 'Ammonia Economy,'" Schaumann notes. "By partnering with leading Japanese partners, we are integrating our global terminal expertise with a domestic engineering force that has mastered the safe handling of these molecules over decades."

For Vopak, he adds, compliance and rigorous safety standards are not obstacles but "essential prerequisites for a sustainable, multi-decade investment."

Japan's position as an industrial leader provides an added advantage for Vopak's new Tokyo office, Schaumann says. From Tokyo, he supports global business development while overseeing Vopak's expansion in Japan. "My role is not only to develop projects in Japan, but also to develop the relationships with our Japanese partners that are active overseas—whether it's in Brazil or Malaysia or the Middle East."

As Vopak was establishing its Japan entity in 2024, support from Japan External Trade Organization (JETRO) played a practical and strategic role, Schaumann says.

"JETRO has been instrumental in facilitating our entry into the Japan market, by helping us connect with key players and navigate the local environment to build trust with our partners."

Support ranged from administrative procedures—business registration, labor regulations, and information on visa process—to high-level business matching.

"Ultimately, JETRO's involvement served as a signal of credibility, helping us integrate seamlessly into the Japanese business community as a long-term partner."

Understand Culture and Build Partnerships: A Message to Global Investors

For global companies considering expansion into Japan's energy transition sector, Schaumann offers a clear message:

"Global corporations that possess the capacity to comprehend and adapt to the complex socio-cultural landscape of the Japanese market, and that demonstrate persistence and patience, will discover attractive investment and business prospects within Japan's energy transition sector."