In the Kitakyushu city, a unique project is already underway in which hydrogen generated during iron manufacturing processes can be utilised to provide energy to vehicles as well as homes.
An official at the Kitakyshu Hydrogen station explained to a team of journalists that vehicles which can run on hydrogen fuel cells can be refulled here.
The hydrogen used at the station was a byproduct generated during iron manufacturing.
"Some Japanese companies are front-runners in research in this area and with increase in production the cost of such vehicles is expected to come down.
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"Moreover, it is likely that the network of such hydrogen stations will also be expanded to attract more and more people to use these eco friendly vehicles," the official added.
Officials said that authorities and government agencies in Japan were also encouraging the shift towards vehicles which run on cleaner fuels like hydrogen.
Japan is heavily dependent on fossil fuels and with the shutdown of the Fukushima nuclear plant in 2011, its dependency on fossil fuels for power generation has increased.