As countries across the world were finding it difficult to go beyond short-term quick fixes in the face of rising energy costs, Japan on its part launched the first major initiative to turn to a hydrogen economy. A project was initiated to make use of fuel cells to light and heat households. In the initial phase, 3000 households across Japan would be covered. The move was aimed to cut Japan’s dependence on foreign oil. Earlier in 2005, the official residence of the Japanese prime minister had become the first house in the world to be equipped with a domestic fuel cell in 20051.

Australia also was pushing to make the ‘coal to liquid technology’ a major part of its fuel basket. Australia’s resource minister Martin Ferguson noted that converting coal and natural gas to fuels would play a ``major role in Australia's energy future”2. Reports noted that Treasury Secretary Ken Henry was also carrying out a review to assess the barriers to investments and development of gas fields in remote areas.

• 1. “As energy bills soar, Japanese test fuel of future,” Associated Press, June 7, 2008, at http://afp.google.com/article/ALeqM5irtvz-PSWsRBd16dWzlQnYzsRR4Q
• 2. Angela McDonald Smith, “Australia to Promote Coal-to-Liquids to Improve Energy Security,” Bloomberg, June 5, 2008, at www.bloomberg.com/apps/news?pid=20601081&sid=aOEgc0kUdGTM&refer=australia