Japan and European Union has agreed to cooperate on polices related to creating demand and supply for clean hydrogen in addition to advancing technologies needed to develop the new fuel, according to Reuters.

“Hydrogen will be very soon an internationally traded commodity, and close EU-Japan cooperation will be essential for promoting renewable and low-carbon hydrogen globally, and ensuring that standards and regulations converge,” said Kadri Simson, European Commissioner for Energy.

Simson on Monday met Ken Saito, Japan’s minister of economy, trade and industry, and the two also chaired a Japan-EU hydrogen business forum attended by executives including of JERA, Tokyo Gas, Mitsui, Iwatani.

Besides, Japanese trading house Itochu Corp on Monday said it is conducting a feasibility study of building hydrogen and ammonia supply chain in Kitakyushu in southern Japan, is poised to become one of the country’s key offshore wind hubs.

“Hydrogen is an important priority for European energy policy, and hydrogen will help us to get rid of the remaining Russian fossil fuels. But it also, in the long term, helps us to decarbonize our industry,” Simson also said on Monday.

Notably, Germany’s cabinet approved last week a bill to fast-track the construction of hydrogen infrastructure, import and production facilities.

The Hydrogen Acceleration Law will give infrastructure an “overriding public interest” status, meaning authorities will prioritize it in the approval process.

Moreover, procedures will be simplified and digitized and legal cases challenging hydrogen projects and environmental impact assessments will be shortened, according to the planned law to swiftly expand the hydrogen fuel infrastructure.