America News Agency

Japan will launch a next-generation passenger jet around 2035 in an attempt to build a domestic industry after a project led by Mitsubishi Heavy Industries Ltd. to develop the country's first passenger jet failed, sources said Wednesday.

The Ministry of Economy, Trade and Industry and several companies in the private sector will work together on the project, sharing an investment of about 5 trillion yen ($33 billion) over the next 10 years, sources said.

The new planes could be fueled by hydrogen, among other options, but not traditional jet oil, as growing pressure for decarbonized transport options spurs innovation. Global airlines have in recent years started using sustainable aviation fuel, or SAF, derived from waste food oil and plants.

The aircraft industry is expected to be a growth driver for Japan and a domestic aircraft would benefit a number of domestic component suppliers, according to ministry officials.

Mitsubishi Heavy pulled the plug last year on a previous project to launch Japan's first domestic passenger jet, called SpaceJet, citing a lack of know-how and rising costs.

The development of SpaceJet, formerly known as the Mitsubishi Regional Jet, began in 2008 with 50 billion in financial aid from the industry ministry and the first delivery was planned for 2013.

But the delivery schedule was postponed six times before the coronavirus pandemic dealt the project its final blow.

Industry experts say the company's strategy of sticking to in-house development rather than collaborating with outside talent was partly responsible for the failure, which ultimately cost nearly 1 trillion yen.

Mitsubishi Heavy had built military aircraft during World War II, including the Zero fighter.