Japanese technology company Asahi Kasei has secured government funding to expand its production of green hydrogen equipment, part of Japan’s ambitious efforts to hit carbon neutrality by 2050.
Under the plan, Asahi Kasei will build new manufacturing facilities at its plant in Kawasaki, aiming to produce 2 GW (gigawatts) of electrolyser components like cell frames and membranes annually by 2028.
Backed by a ¥11.4bn ($74m) subsidy as part of Japan’s Green Transformation (GX) strategy, this expansion is part of a larger ¥35 billion ($224m) investment by the company.
Green hydrogen, produced using renewable electricity, is central to Japan’s push to ditch fossil fuels. Asahi Kasei’s expanded capacity, combined with existing facilities, will enable the company to churn out more than 3 GW of electrolyser components every year.
Part of the funding will go towards scaling up production of alkaline water electrolysers. ©Asahi Kasei
“Looking ahead to the huge market that will emerge from a new hydrogen ecosystem…we aim to build the world’s largest water electrolysis equipment manufacturing capacity and supply system,” said Masami Takenaka, Asahi Kasei’s Lead Executive Officer.
The company isn’t just focused on Japan. It plans to grab a 20% share of key markets in Europe, North America and India by 2030, working with global partners to ramp up production and ensure reliable supply chains.
Kenji Takeda, an Executive Officer at Asahi Kasei, pointed out some of the challenges facing green hydrogen growth, including high costs and fluctuating renewable energy supplies. “Establishing a stable manufacturing supply chain for green hydrogen is another major step towards realising a hydrogen society,” he said.
Japan’s big bet on green hydrogen
Japan has long been a trailblazer in hydrogen technology, and green hydrogen is central to the country’s plan to go Net Zero. The global green hydrogen market was valued at $4.02bn in 2022 and is projected to reach $50.3 billion by 2030, with Japan playing a major role in driving adoption.
Hydrogen is already widely used in Japan—over 20 million tonnes annually, according to the International Energy Agency (IEA)—with demand driven by industries and hydrogen-powered cars, buses, and even buildings.
Unveiled in 2022, the country’s GX strategy has laid out a ten-year roadmap to allocate ¥150 trillion ($962m) for investment in technologies like carbon capture, utilisation and storage, hydrogen and ammonia supply networks.
