Norway and Australia are racing each other to show they can supply Japan with hydrogen, hoping to fulfill its ambition to become the first nation significantly fueled by the superclean energy source.

While Australia has planned to derive liquid hydrogen from brown coal for some time, Norway could steal a march if a pilot project producing the fuel using renewable energy — a climate-friendly method more in keeping with Japan's aims — is cheaper.

The government is betting heavily on the country becoming a "hydrogen society" despite the high costs and technical difficulties that have generally slowed its adoption as a carbon-free fuel.